The United States and the European Union announced on 31st October 2021 a re-establishment of transatlantic trade flows in steel and aluminum. Both parties committed to joint action through a “Global Arrangement on Sustainable Steel and Aluminum” (GASSA). A key potential policy tool available to policymakers to achieve the goals set out in the GASSA is a border carbon adjustment. CRU simulated the impact of potential BCAs designed and proposed with CLC (the “GASSA simulations”) on the U.S. and European domestic markets as well as nonmarket economies.
