Callanish learns that the UK intends to further tighten its protective measures against steel beyond those recommended by the Consumer Protection Agency (TRA) in accordance with a recent decision by Secretary of State Jonathan Reynolds.
It is understood that in a letter to TRA chairman Nick Baird, Reynolds noted that in his proposed decision, the government would limit the liberalization of existing steel import quotas to 0.1%.
The recommendations were published back in May.
There will also be a limit on residual quotas, which will prevent individual countries dominating the quota. This includes a 15% limit on the residual quota of category 4 (metal-coated sheet) and a 20% limit on the residual quotas of categories 7 (sheets of non-alloyed materials and other alloys) and 13 (rebar), which come into force on July 1.
In addition, unused quarterly quotas will no longer be provided in the next quarter.
The UK Steel Industry Association had previously made these recommendations after submitting an application for review.
UK Steel says this step will be crucial to reduce the damage that will be caused to domestic steelmakers as a result of the redirection of steel production away from the US market in light of the steel import duties imposed by President Trump.
UK Steel CEO Gareth Stace notes: "Now we need to back up the tightening of protection measures with a comprehensive new trade protection mechanism. This will help create the favorable business environment that our country aspires to, and encourage private investors to enter this sector, ensuring our survival and prosperity. The new mechanism, which will replace the guarantees before their expiration, should be put into effect in January."
The Association adds that the upcoming Trade Strategy may lead to the adoption of new legislation that will provide the government with the tools necessary to protect companies from subsidized steel, which is currently flooding the steel industry. The markets are at an unstable price level.
Carrie Bone United Kingdom
Kallanish.com
