Wales calls on British government to urgently support steel sector

One of the pressing issues is trade barriers

First Minister of Wales Eluned Morgan has called on the UK government to take urgent action to support the steel industry, according to Swansea Bay News.

She noted that Port Talbot’s transition to electric arc furnace production faces uncertainty over trade measures.

Morgan said she had raised the issue at a meeting with UK Prime Minister Keir Starmer, describing the need for action as “urgent.” The metals sector is currently facing challenges such as high energy costs, global overcapacity, and rising trade barriers.

The Welsh government is calling for the UK’s steel strategy to be published as a matter of urgency to provide clarity and certainty for workers and industry, according to a statement released by Morgan.

It also notes that EU trade measures could have dramatic consequences for the Welsh steel sector at a time when it is already under enormous pressure from US tariffs and global overcapacity.

Wales has called on the UK government to protect existing trade agreements between the UK and the EU on steel.

The Welsh government also stressed the urgent need for the UK to put in place robust safeguard measures for steel to replace the existing ones, which expire in June 2026.

In addition, calls for duty-free access under quotas for UK steel exports to the US under the agreement between the parties were reiterated. US tariffs continue to burden exporters given the strategic importance of this market.

More broadly, the sector wants to see a competitive electricity pricing structure, greater influence on the use of British steel through public procurement, reliable trade defense measures, and protection against carbon leakage.

It should be noted that the UK’s plan to introduce its own cross-border carbon adjustment mechanism (CBAM) in 2027 has many shortcomings and could accelerate the decline of British industry. Representatives of the steel, cement, and chemical sectors have warned about this. Among other things, the associations are concerned about the possible advantages for foreign competitors.