EU's Steel Safeguard Revamp to Bolster Domestic Industry
The European Commission has proposed slashing tariff-free steel import quotas by nearly half and imposing a 50% duty on excess imports. The move aims to increase EU steel production capacity from 67% to around 80%. The measures, pending approval, will affect imports from major steel-exporting countries and could influence U.S.-EU trade policies.
- Country:
- Belgium
The European Commission on Tuesday announced a plan to significantly reduce tariff-free steel import quotas and impose a 50% duty on excess shipments. This strategy is intended to protect the struggling EU steel industry, currently operating at only 67% capacity, amid increased imports and U.S. tariffs.
Under the new proposal, the tariff-free import volume will be reduced to 18.3 metric tons annually, down by 47% from current quotas starting in 2024. These measures align with similar policies in Canada and the United States and will require importers to verify the origin of their steel.
The measures are expected to cut imports to a 15% market share, thereby safeguarding jobs and ensuring industry stability. The EU will also engage in WTO negotiations to address steel overcapacity, potentially leading to trade agreements that replace tariffs with quota systems. Major exporting countries affected include Turkey, India, and China.
(With inputs from agencies.)
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