The EU has approved new safeguard measures on steel imports

On 8 June, the Council of the European Union adopted a regulation establishing a new system to protect the bloc’s steel market. This is stated in a press release from the institution.

The new rules will replace the EU’s current safeguard measures, which are due to expire on 30 June this year.

“By adopting this decision, the European Union is creating a more robust framework for responding to global market distortions, safeguarding fair competition and providing greater certainty for both steel producers and the sectors that use their products,” said Michael Damianos, Minister of Energy, Trade and Industry of the Republic of Cyprus.

The regulation introduces a revised tariff quota (TRQ) system. It also allows unused quotas to be carried over from one quarter to the next, but only within the same year. At the same time, as noted, the document ensures sufficient supply for the processing industries and remains compatible with the EU’s international trade commitments.

To enhance transparency and prevent circumvention of safeguard measures, a provision relating to the ‘smelting and casting’ requirement, which determines the country of origin, is introduced.

The Regulation establishes a reinforced review mechanism, allowing the EC to assess the scope and effectiveness of the measures and propose adjustments where necessary, in response to market developments and changes in global conditions of excess capacity

“In a joint declaration accompanying the regulation, the Council, the European Parliament and the European Commission reaffirm their commitment to reducing economic dependence on the Russian Federation, emphasising ongoing efforts to diversify steel imports whilst gradually phasing out Russian steel products,” the statement reads.

The regulation will be published in the Official Journal of the EU and will enter into force on 1 July this year.

It should be noted that the bloc’s new protective measures provide for an overall reduction in steel import quotas to 18.3 million tonnes per year and a 50% duty on supplies exceeding the established limits.

As stated in the document, the European Commission must consider the interests of EU candidate countries facing an exceptional and immediate security situation, such as Ukraine, particularly where they previously enjoyed preferential access to the bloc’s market for categories of goods covered by the new rules, without, however, undermining the effectiveness of the regulation.

It should be recalled that Ukrainian steel producers and officials have warned that the EU’s plan to halve steel import quotas will harm Ukraine, which is attempting to fund its defence in the face of Russian aggression. The bloc’s new protective measures could cost the country up to €1 billion in export revenue.