EU lowered steel import quotas
Members of the European Parliament have approved new trade measures aimed at protecting the European Union steel market from the effects of global oversupply. The resolution, prepared in connection with the expiration of the current protective measures on June 30, 2026, is expected to enter into force on July 1, 2026.
According to the new decree, the volume of duty-free steel imports will be limited to 18.3 million tons per year, which is 47% less than the quota level for 2024. The customs duty rate, which will be applied in case of exceeding the quota, will be increased from the current 25% to 50%. In addition, a 50% tariff will also be imposed on metal products that do not fall under the quota. The Regulation takes into account Ukraine's status as a candidate country and safety conditions when allocating quotas for a particular country, and is also aimed at limiting the pressure of global overproduction on the European steel market. The new rules also strengthen the requirements for traceability. Accordingly, the origin of the steel will be determined based on the "melting and casting" rule, indicating the place where the steel was first produced. This measure is aimed at preventing circumvention of the rules by restricting processing operations in third countries. The resolution was adopted in accordance with the agreement reached between the negotiators of the Parliament and the Council, with 606 votes in favor, 16 against and 39 abstentions. Speaker Karin Carlsbrough stated that Europe needs fair trade conditions for a competitive steel industry, and stressed the importance of addressing the negative impacts caused by global overcapacity. Carlsbrogh also noted that Ukraine should be given special attention in accordance with the new regulations in light of current circumstances. The EU steel sector has faced significant difficulties in recent years due to price pressures and rising imports caused by a global overcapacity, with around 100,000 jobs reportedly lost since 2008. It is expected that the new regulation will lead to an important step towards maintaining the competitiveness of the sector.Author: Editorial staff of SteelRadar
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