CBAM and EU safeguard measures complicate the activities of the steel industry – Assofermet

The regulatory framework of the carbon border adjustment mechanism (CBAM) and safeguard measures on steel imports are hampering the daily operations of Italian and European steel companies. This position was expressed by the Italian trade association Assofermet, Agenparl reports.

Problems with completing CBAM reports, the economic impact expected from the mechanism starting in 2026, and European safeguard measures in place since 2018 are a concern for many members of the association.

The association, which represents Italian distributors of scrap, raw materials and steel products, has held discussions with the relevant institutions in Brussels and Rome. In particular, in mid-January of this year, Assofermet met with two relevant European Commission directorates – Trade and Taxation and Customs Union.

According to the association, they received assurances that their point of view, especially regarding the future evolution of CBAM, would be taken into account.

«While agreeing that the CBAM will also increase costs for end users in the steel supply chain, we have pointed out to the EC that if certain types of finished products are not included in the mechanism, the European industry will lose competitiveness given its global role,» Assofermet said.

The association also noted the open attitude of the Italian authorities to the problems of the steel supply chain arising from regulation and the willingness to continue the dialogue on the regulatory framework.

As GMK Center reported earlier, companies that had difficulties submitting their first report under the cross-border carbon adjustment mechanism due to technical issues with the relevant registry were given the opportunity to postpone it for one month. During the transitional phase, importers had until January 31, 2024, to submit declarations for the fourth quarter of 2023.