By Philip Blenkinsop
Brussels (Reuters)-The European Commission proposed, on Tuesday, the cutting of exempt tariff steel import quotas and a 50% rate for surplus remittances in an attempt to preserve the viability of steel production in.
Due to the increase in imports and tariffs from the United States, EU steel producers are operating with only 67% of the capacity and new measures, in line with those reported by Reuters last week, are designed to raise this percentage to 80%.
EU steel is currently protected by safeguards that limit imports of 26 types of steel, with 25% rates above these limits. However, they have constantly increasing each year, despite the decline of demand and, according to the rules, should expire in mid -2026.
The commission is now proposing an import volume exempt from 18.3 -ton tons per year, a 47% reduction in the 2024 quotas, and a duplication of right off the quota to 50%, in line with Canada and the United States, although the latter’s tariffs apply from the first ton.
The commission stated that quota volumes would correspond to imports from 2013, when, according to her, began excess capacity. The measures, which will need to be approved by the EU governments and the European Parliament, will also require importers to have evidence of the steel origin.
Axel Eggert, Director General of the EuroFerifer European Steel Association, said the measures would reduce imports to a 15% market share and would be the vital step that the sector was looking for and could save hundreds of thousands of jobs.
The block will also need to negotiate with World Trade Organization (WTO) partners, whose result could be tariff -free allocations. Only countries in the European economic area, Iceland, Liechtenstein and Norway will be exempt.
The United Kingdom, the eighth largest exporter of steel to the EU, said it is pressing Brussels to obtain urgent clarifications.
“It’s vital to protect commercial flows between the UK and the EU and we will work with our closest allies to face global challenges rather than increasing our sectors’ problems,” British industry minister Chris McDonald said in a statement.
(Report of Philip Blenkinsop; Additional Report of Catarina Demony, in London)
