TRA unveils proposed restrictions on steel imports from the UK
The United Kingdom Consumer Protection Authority (TRA) has recommended the introduction of marginal tariff quotas (TRQs) to limit the dominant position of individual countries in relation to certain categories of steel imports.
TRA proposed 40% restrictions on the use of quotas by individual countries for category 4 (metal-coated sheet), category 7 (sheets of non-alloy and other alloys) and category 13 (rebar).
According to the TRA proposals, the "carry-over" mechanism, in which unused quotas are provided in the next quarter, will also be abolished, while countries with country-specific quotas will no longer be given access to the remaining quota in the last quarter. In addition, quotas for developing countries that are not covered by this measure will also not be redistributed, according to the document "Statement on the expected final determination". However, the 3% quota liberalization will still be in effect from July 1.
Importers need time to adapt'
If approved by the UK Secretary of State, the transfer of unused quotas will end on July 1. However, restrictions for specific countries will be introduced from October 1. TRA said this would "give steel importers time to adjust."
The TRA recommendations are now open for feedback from stakeholders. Comments must be submitted via a publicly available TRA file by May 26.
A study conducted for the European Parliament's Steel Review this month revealed that British steel buyers have suspended their purchases due to uncertainty about expected changes in national import protection measures.
Commenting on the proposed changes, John Carruthers-Green, a member of the European Parliament and an analyst of the international steel market, said:"The issue of reviewing protective measures has been repeatedly raised during recent discussions with British research partners. There is a very clear line between the opinions of traders, who naturally want to maintain access to foreign supplies, and domestic manufacturers, who seek stricter protection.
"Now that we have the TRA recommendation, the market has one last chance to digest and comment on the changes before they are submitted to the UK government for implementation."
The TRA expanded In March, a large-scale review of the TRQ was conducted to ensure that new concerns raised by the British steel industry were comprehensively addressed. The UK Steel industry association reported that steel demand decreased by 16% between 2018 and 2023. It also talked about the exhaustion of tariff rates.