Polish HIPH hopes for rapid implementation of EU steel safeguard measures

The EC proposal is a change in approach to WTO rules

The European Commission’s proposal for new safeguard measures on steel imports to replace the current ones is a change in the institution’s approach to the World Trade Organization (WTO) rules. This was stated by Mirosław Motyka, Executive Director of the Polish Steel Industry and Commerce Chamber (HIPH), HorecaTrends reports.

«This change means that the European Commission has changed its approach to the WTO for the first time in its history. It recognizes the principles of the organization, but it is approaching them creatively and more ambitiously. Of course, this was influenced by the actions of the transatlantic partner, the United States, and this is reflected in the proposal,» Motyka said at an industry event last week.

He emphasized that setting steel quotas at 18.3 million tons does not mean closing the market. And the introduction of the principle of determining the origin of products – «smelting and casting» – is extremely important from the industry’s point of view, because until now, according to the rules, the final processing process has been decisive.

Mr. Motyka expressed hope that the proposal would be implemented soon. In his opinion, each extension of the rule-making period will encourage importers to «meet the deadline.» This could mean an increase in imports and price pressure on European producers.

Adam Preiss, CFO and Member of the Board of ArcelorMittal Poland, also acknowledged that the new mechanisms and quotas are crucial for the survival of the European steel market in Europe. According to him, the most important thing will be how quickly and in what detail the proposed measures and the CBAM mechanism will be implemented.

Earlier, Motyka told Interia that the EC’s proposal was a step in the right direction, but noted that steelmakers could not wait any longer. He also reminded that the US steel tariffs imposed by Donald Trump are applied from the first tonne – the Americans do not limit themselves to protecting the market.

As a reminder, in January-August, Polish steelmakers produced 5.13 million tons of steel, up 7.2% year-on-year. The restart of an important enterprise, Huta Częstochowa, has contributed to the recovery. Since February 3, the plant has been operating at full capacity after more than a year of downtime.

As GMK Center reported earlier, Wojciech Balczun, Minister of State Assets of Poland, will meet with ArcelorMittal representatives in the near future to discuss the future of the company’s operations in the country. According to him, it will be about the concern’s strategic plans for its presence or withdrawal from Europe.

Balczun noted that Poland may consider participating in the preservation of steel assets, but ArcelorMittal is a private international entity that makes autonomous business decisions. At the same time, he called the very fact of the government’s dialog with the company a search for solutions.