British steelmakers are calling for an improvement in the terms of trade in steel with the EU

British steelmakers are calling for further negotiations with Brussels regarding import quotas.

The publication of the new European steel quota regime is an important step in providing certainty for British exporters, according to the industry association UK Steel. 70% of steel exports from the UK go to the EU.

However, the association believes that this should not be the end of the discussion. Global steel markets remain under pressure due to subsidised overproduction, so both the UK and the EU have been forced to strengthen their trade defences. Nevertheless, these measures will inevitably complicate trade between the two closely integrated markets.

UK Steel emphasised that there are still opportunities to improve market access, as negotiations to reset relations between the parties are ongoing.

The EU’s quota for the UK stands at 1 million tonnes; access to quotas under free trade agreements and residual pools could increase the country’s duty-free steel exports to 2.14 million tonnes.

Meanwhile, Rajeev Nair, Chief Executive of Tata Steel UK, stated that the overall reduction in EU duty-free quotas, combined with recent measures on steel imports into the UK, is likely to have a significant impact on the company’s business in the country.

“It will take us some time to analyse the specific details of the announcement regarding the various product categories, but given the importance of the EU market to British steel producers, fair and effective market access remains critically important if we are to achieve sustainable steel production here in the UK,” he noted.

Tata Steel UK has once again expressed concern that the volumes of UK quotas in a number of product categories continue to allow significant import penetration and do not adequately reflect the country’s underlying market conditions. The statement emphasises that the company is constantly engaging constructively with the government on this issue.

It should be recalled that on 30 June, the European Commission published an implementing regulation setting out the allocation of tariff quotas for steel imports.