Switzerland seeks EU exemption from new steel tariffs
Switzerland has stepped up its diplomatic efforts in Brussels to seek exemption from the European Union's planned new steel trade rules.
Despite the fact that the European Parliament's Trade Committee officially rejected such a request in recent weeks, the Swiss authorities resumed their application for tax exemption, holding an urgent meeting with EU representatives on Thursday.
The Swiss State Secretariat for Economic Affairs (SECO) has announced that, at Bern's request, an extraordinary meeting of the Joint Committee of the EU-Switzerland Free Trade Agreement has been convened. During the meeting, the Swiss side stressed the need to preserve the established regional supply chains, which are crucial for European industry, and called for a special regime in steel trade.
Switzerland's new efforts come at a time of rising tensions in the EU's trade policy. On Tuesday, the European Parliament's Committee on International Trade (INTA) approved a new steel trading system that will replace the current protective measures, which expire in June 2026, with 36 votes in favor, two against, and five abstentions. The Committee unequivocally rejected the proposal to exempt Switzerland from tariffs imposed outside quotas.
According to the newly adopted system, duty-free steel imports to the EU will be limited to 18.3 million tons per year, which is 47% less than the quota level for 2024. Tariffs on imports imported outside quotas will be increased from 25% to 50%. The benefits will be provided only to members of the European Economic Area — Norway, Iceland and Liechtenstein.
However, the committee's tough stance towards Switzerland seems to contradict statements that the EU has sent to other trading partners. Earlier this week, EU Trade Commissioner Maros Sefcovic said that after the signing of the free trade agreement between the EU and India, India will occupy a "privileged position" in negotiations on access to the EU steel market. It is reported that India is seeking a duty-free quota of about 1.6 million tons per year.
Despite the intensification of Switzerland's diplomatic efforts, experts believe that it will be difficult for the EU to change the course of its new steel policy in the short term. The new measures are expected to establish a tougher trade regime aimed at protecting the European steel industry, while triggering new rounds of negotiations with third countries.
Author: SteelRadar Editorial Team
Steelradar.com