EU proposal to safeguard steel
The European Commission proposes strategy to protect the EU steel sector from 'unfair impacts of global overcapacity'.
Delivering on the EU Steel and Metal Action plan, the proposal plans to maintain open trade and strengthen engagement with global partners to tackle overcapacity by:
- Limiting tariff-free import volumes to 18.3Mt a year - a reduction of 47% compared to 2024 steel quotas
- Doubling the level of out-of-quota duty to 50% - compared to the 25% under the safeguard
- Strengthening the traceability of steel markets by introducing a Melt and Pour requirement to prevent circumvention
European Commission President Ursula von der Leyen says, 'A strong, decarbonised steel sector is vital for the European Union's competitiveness, economic security and strategic autonomy. Global overcapacity is damaging our industry.'
The Commission says the proposal will replace the steel safeguard measure that is set to expire by June 2026. It responds to the call from EU workers, industry, several Member States, Members of the European Parliament, and stakeholders to offer strong and permanent protection to the EU steel industry, with a view to safeguarding EU jobs and supporting the sector in its decarbonisation efforts.
The EU steelmaking industry is the world's third largest steel producer, reports the Commission. It employs around 300,000 people directly and supports some 2.5 million jobs indirectly, with steel production sites across more than 20 EU Member States.
Assistant General Secretary Alasdair McDiarmid from the steelworker's trade union Community had this to say, 'The new measures proposed by the EU represent an existential threat to our steel industry. Europe is by far the largest destination for UK steel exports, and losing access to this market would have a catastrophic impact on British jobs.
'Global overcapacity is a shared challenge and it is in both the UK and the EU's interests to work together to find a solution. A trade war, at what is already a turbulent time for the global steel industry, would be incredibly damaging for everyone involved, with workers in the UK and Europe paying the heaviest price.'
For more like this
