The Council of the European Union has approved its mandate to negotiate a new regulation aimed at addressing the trade-related effects of the global steel capacity glut on the EU market.
The proposed system is intended to replace the existing protective measures for steel, which expire on June 30, 2026.
The Council's position confirms the EU's determination to maintain a high level of protection for the European steel industry, while providing additional flexibility and guarantees for steel consumers processing production. This balance reflects the concerns constantly expressed by EUROMETAL and its members regarding the functioning of trade protection instruments and their impact on the steel production supply chain.
Key elements of the Council's mandate
The mandate largely retains the main elements of the European Commission's proposal. It provides for a significant reduction in duty-free imports to 18.3 million tons per year, which is 47% less than the protective quotas for steel in 2024. It also increases the quota duty to 50% compared to 25% under the current protective regime. At the same time, the Council introduced several amendments aimed at increasing legal clarity, flexibility and consideration of the interests of the Union, especially in relation to industries using steel.
Wider recognition of the processing industries
The main change in the Council's mandate is to clearly define the interests of the trade union as a guiding principle. This requires the European Commission to take into account the economic impact on processing industries and end users when allocating tariff quotas, applying bilateral protective measures, or adjusting quota volumes. In addition, the Council introduced a new criterion obliging the Commission to consider situations where a significant price increase could seriously undermine the competitiveness of processing industries when quotas are changed.
Increased quota flexibility
In order to improve the functioning of the tariff quota system, the Council authorized the transfer of unused quota volumes for one quarter to the next quarter during the same annual quota period. The mandate also clarifies that, although the European Commission can adjust the volumes of tariff quotas through delegated authority, the total volume should remain within a certain range of 15.2 to 22.2 million tons, providing a greater degree of predictability for market operators.
Melting and casting requirements: being reviewed in stages
To eliminate the risks of circumvention and increase the transparency of the supply chain, the regulation introduces
