On May 19, the European Parliament successfully approved a new EU steel import regime that imposes significant restrictions on access to steel imports to combat the negative impact of global steel production oversupply on the European steel industry.
Members of the European Parliament voted for the adoption of the regulation in the first reading, as well as a joint statement by the EU authorities on the continued access of Russian steel slabs to the single market. The resolution was adopted with 606 votes in favor, 16 against, and 39 abstentions.
Starting on July 1, the new regulation, which provides for approximately halving the total tariff quotas and doubling the duty rate beyond quotas to 50%, will be a long-term replacement for the existing steel protection system in the EU, ensuring that there will be no gaps in the system. The duration of the EU's protective measures in the field of steel trade in accordance with WTO rules is eight years. Extending any steel protection measures (other than anti-dumping measures and countervailing duties) beyond this eight-year period is legally difficult and requires negotiations under Article XXVIII of the WTO General Agreement on Tariffs and Trade (GATT) in order to find an agreement on trading partners to raise the EU base tariff rate to 50% from the current 0%. Or the minimum level.
Further complicating the situation are the EU's various free trade agreements (FTAs), which cover most of the bloc's steel imports. The resolution will apply tariff increases and quota restrictions to all steel trading partners, regardless of the FTAs status, although FTAs partners are likely to receive higher deductions for their quotas than those who are not WTO FTAS members.
Along with the regulations, a joint statement was adopted by the Commission, the Council of the EU and the Parliament, which clarifies that the existing sanctions against Russian steel slabs will be in effect until the end of September 2028. While the new import regime specifically prevents the opening of stores for countries subject to sanctions (for example, Russia). semi-finished steel products, including slabs, are not subject to the regulations, and therefore their access to the single market has remained unchanged since July. The rapporteur on the development of regulations, Karin Carlsborough, speaking at the European Parliament the night before, said that the EU authorities had reached an agreement on an "abrupt cessation" of imports of Russian steel, calling blocking supplies from Russia "the most dangerous step" in the context of combating excess production capacity. However, it is unclear how this statement or broader regulation in any way corrects the existing treatment regime for Russian steel
