EU to consider extension of safeguard measures on steel products

EU safeguard measures on certain steel products, which were due to expire in mid-2024, will be reviewed for possible extension. This is stated in the report of the European Commission (EC).

The new investigation was launched at the request of 14 EU member states in connection with the influx of carbon-intensive imports that threaten the sustainability of the European steel industry.

According to WTO rules, safeguard measures can be in place for no more than 8 years. In the case of European steel measures, this is the end of June 2026. Therefore, as the EC explained, a potential extension could be for a maximum of two additional years.

The Commission will also actively engage with EU steel consumers to assess whether any potential extension of safeguard measures would be in the common interest of the bloc.

All interested parties (including exporting producers, third country governments, consumers, importers and EU producers) can express their views until February 26 this year. They will also be able to comment on the submissions of other parties. It is noted that the EC has also distributed questionnaires to producers in the bloc to assess their economic situation.

The investigation will be completed, and a decision made before the expiration of the current safeguard measures (June 30, 2024).

As GMK Center reported earlier, in July 2018, the EC introduced temporary safeguard measures on steel products in response to the US decision to impose duties on steel and aluminum under Section 232. The measures were intended to prevent the diversion of imports destined for the United States to the European market and to protect local steelmakers.

In early 2019, safeguard measures on certain steel products became final, and the EC extended them until June 30, 2024. They apply to 26 categories of steel products subject to import quotas, which are subject to a 25% duty if exceeded.

Also, the German steel regions have called for the extension of the EU’s safeguard measures against steel imports. «The Steel Alliance is also asking for more steel products to be included in the carbon border adjustment mechanism (CBAM) to protect steel production in Europe.