The UK has opened consultations on trade defense measures for steel

The UK has launched a six-week consultation campaign on future trade defense measures for steel, according to a statement from the British government.

Representatives from all links in the steel supply chain have been invited to express their views, and the proposals will help shape new steps.

The six-week call for proposals complements further government action to help the industry in the face of global challenges. The consultations will take place against the backdrop of the launch of trade and industrial strategies, the latter of which has outlined broader plans to support key industrial sectors, including steelmaking.

As noted, the call for input is a key step in the government’s broader commitment to revitalizing the country’s metallurgical industry. This comes alongside interventions such as a £500 million grant to transform the Port Talbot plant, £2.5 billion in investment promised to revitalize the sector, steps to protect British Steel’s blast furnaces in Scunthorpe, and a forthcoming strategy for the steel industry.

Business and Trade Minister Jonathan Reynolds said the government is using all available tools to ensure the long-term success of the industry. He said that thanks to the trade agreement with the US, Section 232 tariffs on British steel will be abolished, while manufacturers in other countries still face tariffs of up to 50%, but the government will not stop there.

“We will not sit by idly while cheap imports threaten to undercut UK industry, so we are inviting industry to shape the next phase of our trade defences so we can provide robust support and ensure a fair and competitive market,” he said.

UK Steel CEO Gareth Stace called it positive news that the government is developing a new trade defense mechanism.

“With growing global steel overcapacity and rising trade diversion, Government must deliver a new trade defence system to provide industry certainty before steel safeguards expire in June 2026,” he said.

It should be noted that in June 2024, Britain extended the protective measures for 15 categories of steel for another two years. WTO rules do not allow for their indefinite extension.

As GMK Center reported earlier, the UK plans to introduce stricter-than-expected restrictions on steel imports, thereby limiting supplies from Vietnam, South Korea, and Algeria. Despite previous recommendations from the Trade Remedies Authority (TRA), the trade minister announced his intention to reject the proposed quotas in three categories, calling them too lenient.