New EU quota system will reduce Turkey’s share of the European market – TCUD

The country's steelmakers may turn to alternative markets

The EU’s new quota system will reduce Turkey’s share of the European market. This was stated by Veysel Yayan, Secretary General of the Turkish Steel Producers’ Association (TCUD), in an interview with Bloomberg HT.

He called this move incompatible with the spirit of the Customs Union. In addition, Yayan added that Turkey must now seriously consider its right to take countermeasures.

According to him, Turkey’s share of the European steel market has been gradually shrinking in recent years. Exports of steel products from the country, which previously reached 7–7.5 million tons, were significantly curtailed in 2018, and the new quotas will lead to another decline.

“Despite the additional offer, we cannot reach a 14.2% share of EU imports. The quotas proposed to us by the bloc are lower than what we currently have. This indicates that the Customs Union and the trade understanding between us are being ignored,” Yayan stated.

The TCUD Secretary General noted that the EU is pursuing an increasingly conservative trade policy. And although European officials claim that Turkey will be evaluated under the “Made in Europe” approach, the current quota system does not provide the country with any advantage.

If no improvements are made to the European quota system by July 1, Yayan explained, Turkish steelmakers may increasingly turn to alternative markets. In particular, the Latin American market holds significant potential for them.

As a reminder, Turkey reduced its steel exports by 3.5% in the first quarter of this year, to 3.5 million tons.