The German Steel Federation (WV Stahl) said it welcomes the agreement between EU institutions on a new, significantly strengthened instrument for trade protection of steel imports, calling it a key step to protect the German and European steel industries.
As previously reported by SteelOrbis, the Council of the European Union and the European Parliament have reached a preliminary agreement on new measures aimed at protecting the EU steel industry from global overcapacity and growing import pressures.
New system to enhance protection against import pressure
According to the association, the new instrument provides for the introduction of tariff quotas for specific countries and products with clearly defined maximum values. Once these limits are exceeded, a 50% import tariff will be applied.
Kerstin Maria Rippel, Managing Director of WV Stahl, said the agreement sends a strong signal to protect the steel sector from the effects of global overcapacity while maintaining market openness.
It is expected that the new system will eliminate the key shortcomings of the previous system by increasing flexibility and responsiveness to changes in the market. It will also include new rules for determining the origin of goods to prevent circumvention practices such as redirecting steel shipments through third countries to circumvent trade measures.
The industry requires further action
Welcoming the agreement, W. V. Stahl stressed that additional steps are needed to overcome the ongoing crisis in the sector.
These include closing gaps in the carbon dioxide regulation mechanism, creating leading markets for low-emission steel produced in the EU, and ensuring competitive energy prices for energy-intensive industries.
Author: Stilorbis
Steelorbis.com
