Investigation from mid-May showed that the measures generally worked well during the first year of implementation. However, the proposals made to the World Trade Organization are aimed at making them more effective in full compliance with WTO rules, the European Commission (EC) said.
The already existing mechanism of final protection increases the level of quotas for each category of rolled metal by 5% annually. The first liberalization took place on July 1, 2019.
However, steel imports continued to grow in 2018 and therefore the EC decided to reduce liberalization to 3% for the second and third periods. The existing level of quotas for most steel products does not overly restrict trade flows and ensures that traditional trade flows in the EU are maintained.
In addition to slowing the pace of liberalization, the EC has proposed adjusting quotas for some products, including hot rolled flat products and steel, for the automotive sector, and revising the list of exemptions for developing countries based on more recent import statistics.
The proposed adjustments will be discussed with all affected WTO members. Following these consultations, the adjustments will be submitted to Member States for approval so that they can take effect from October 2019.
The current safeguards were provisionally introduced in July 2018 and finalized in February 2019 to prevent serious damage to the EU steel industry caused by increased imports and trade reorientation following the US decision last year to impose tariffs on metal products.
