SteelOrbis spoke with Jamie McLeod, director of Crowe U.
K. LLP, on EU trade measures and the effects of CBAM.
How do you assess the EU's latest statement on its policy of protective measures?
The transition to a permanent system of protective duties on steel entails several notable changes, and the introduction of a "melt and pour" origin verification requirement may make it more difficult for British exporters to comply with this rule. From the point of view of UK Customs and trade, this poses serious risks. The EU remains the UK's largest steel consumer, accounting for 78% of British steel exports in 2024. Without reducing the supply of British-made steel, British exporters could be squeezed out of the EU market by price.
The proposed reduction in quotas reinforces this threat. For the UK, the risk of trade redirection is also significant, and the UK's own protective regime, managed by the Office for Trade Remedies (TRA), is also being reviewed due to increased pressure for reform as a result of the EU statement.
Are these trade measures effective in ensuring a level playing field, or do they distort competition?
The EU's motivation in trying to protect its steel industry from global overcapacity and subsidized imports is obvious, and in principle, it is about restoring fair competition. However, in practice, such trade measures often have unforeseen consequences and nuances. Some EU producers, for example, have expressed concern about rising raw material costs and possible inflationary consequences. Thus, while these measures may help mining producers, they risk causing friction in other sectors of the economy.
Other EU trade authorities, meanwhile, are pushing for further measures to cover processed products that are currently excluded, creating potential loopholes and uneven protection across the supply chain.
This is a complex picture, and the full impact remains uncertain. The proposal still has to go through the EU legislative process and WTO negotiations, which could take months and lead to amendments. Until then, businesses are operating under conditions of uncertainty.
In your opinion, what are the main problems of CBAM and what consequences do you expect for trade flows?
CBAM continues to pose significant operational and strategic challenges for the business, and they are intensifying as we approach the final phase, which will begin in January 2026, at which point CBAM costs will take effect. Accessibility remains one of the biggest challenges.
