The European Commission has unveiled a legislative proposal to replace the existing EU steel protection system, introducing a new structure designed to protect the EU steel industry from the negative effects of global overcapacity, which is expected to increase from the current 602 million tons to 721 million tons. million tons by 2027, according to the project reviewed by SteelOrbis.
The new permanent framework, which will replace the current measures that expire on June 30, 2026, will enter into force in mid-2026.
According to the new regulation, the EU will maintain duty-free tariff quotas equivalent to market conditions before overcapacity, calculated based on the share of imports in 2013 amounting to about 13% of EU consumption, bringing the total annual volume of quotas to 18.3 million tons. SteelOrbis understands that the volume of imports to the EU will decrease as a result of the reduction in quotas. Quotas will be introduced quarterly, without shifting between quarters to avoid overflowing the market. Quotas will also be allocated to product categories based on the share of imports that each product category occupied between 2022 and 2024. If necessary, the European Commission may introduce quotas or restrictions for specific countries. Once these quotas are exhausted, a 50% tariff will be applied, compared to the current 25% tariffs, in line with global tariff levels, in order to minimize the risk of trade redirection.
These measures will require importers to declare the country of origin, confirming where the steel was originally produced in liquid form, to prevent circumvention of the rules.
The Commission will conduct an assessment no later than two years after the adoption of these regulations to assess the need to adjust the product range and, if deemed necessary, consider the possibility of making a legislative proposal aimed at adding additional steel products, including products made of steel or containing a significant amount of steel. In addition, the Commission must evaluate the effectiveness of this regulation before July 1, 2031 and every five years thereafter.
Steelorbis.com
