The European Council has issued a statement on new protective measures in the steel market

The Council of the European Union has outlined its position in detail regarding new safeguard measures on steel imports.

The document was published following an agreement reached between the Council and the European Parliament.

Specifically, the annual quota volume has been set at 18,345,922 tons, and the duty on shipments exceeding the quota is 50%. The allocation of quotas by product category is to be based on the import shares of specific products during the 2022–2024 period. This reference period is considered appropriate because it accurately reflects the latest trade flows.

The European Commission will also have the authority to adjust the total quota volumes within a range of 14.4 million to 22.2 million tons, taking into account the bloc’s interests and other factors such as changes in demand, import market shares, the development of excess capacity, the level of progress achieved in decarbonizing the EU steel sector, the availability of supplies of certain products, and the objectives of the common security and defense policy.

The regime will apply to imports from all third countries, including those with tariff preferences or free trade agreements, unless bilateral safeguard measures apply instead. Products originating in Norway, Iceland, and Liechtenstein are excluded.

The text, among other things, also retains the “smelting and casting” requirement. Importers must provide verified evidence, such as a factory test certificate. This requirement will increase transparency in the domestic steel supply chain and allow the European Commission to obtain accurate information on the origin of imported steel products.

Within two years of the regulation’s entry into force, the EC must assess whether it is necessary to determine the country of “smelting and casting” as the basis for eligibility for tariff quota benefits. Based on this assessment, it may submit a legislative proposal.

The first reading of the new draft legislation in the European Parliament is expected on May 18.

As a reminder, on April 14, negotiators from the European Parliament and the European Council reached a political agreement on new safeguard measures regarding steel imports to counter the negative effects of global overcapacity.