Argentina will be able to export 180,000 mt/year of value-added steel and 180,000 mt/year aluminum to the US without facing the US' new tariffs, according to Minister of Production Francisco Cabrera.
This would include steel products such as seamless tube and pipe for the oil industry, Cabrera said.
The minister's announcement late Tuesday came a day after the White House late Monday said Argentina, along with Australian and Brazil, will be exempt from the new tariffs of 25% on steel and 10% on aluminum, announced in March.
The agreement also aims at Argentinian exports of steel and aluminum at around $700 million/year, of which $300 million would be from steel products and $400 million from aluminum, the ministry said in a statement.
In 2017, Argentina exported around 200,000 mt of steel to the US, but exports of aluminum products were around 260,000 mt, around 30% less than what the agreement now allows. An average of the past three years' exports was taken for the final agreement, the ministry said.
"An amount equivalent to 100% of the average of aluminum and 135% of the average of the steel exported in the last three years to that country will enter without tariffs," it said.
No information on whether Argentina will be able to exceed exports payment taxes was released.
Cabrera said companies will be very satisfied with the agreement.
"In steel, we are exporting seamless pipes, whose price is between $1,700 and $2,000 per mt," he said. "The agreement was of great success."
The relation between Argentinian President Mauricio Macri and US President Donald Trump was a main driver for the agreement, Cabrera said.
Argentina's steel association said late Tuesday the agreement represented great news for the national steel sector but also for the whole country.
"It will maintain the level of activity of a competitive sector internationally, which generates qualified industrial employment, and pulls important volumes of exports of products of high added value," CAA said.
The temporary exemptions to the US tariffs given to Canada, Mexico and the EU have been extended through June 1 as discussions continue.
The tariffs on steel and aluminum imports into the US went into effect March 23 as a result of the Commerce Department's Section 232 investigations into the effect of these imports on US national security.
Canada, Mexico, the EU, Argentina, Australia, Brazil and South Korea were granted temporary exemptions set to expire May 1 unless longer-term agreements were reached.
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