EU introduces new steel quotas: What does this mean for Ukraine?
Members of the European Parliament have approved a new regulation on the protection of the European Union steel market. The document was supported by 606 parliamentarians during the voting, which took place on May 19. 16 deputies voted against, 39 abstained.
The new regulation should replace the measures that expire on June 30, 2026. The updated document sets the volume of duty-free steel imports to the EU market at 18.3 million tons per year, which means a 47% reduction in the duty-free quota relative to previous volumes. A duty of 50% will be applied to imports in excess of the quota instead of the current 25%.
The report of the European Parliament separately notes that the situation of Ukraine as a candidate country with special security problems should be taken into account when allocating quotas between countries.
Approving the updated measures, the EU noted that their goal is to help the EU steel industry to withstand the negative effects of global overproduction in the steel market. Based on this, the melt and pour rule will also apply to imports, which stipulates that the origin of steel is determined by the place where it was first smelted and bottled. Thus, the EU wants to strengthen traceability and limit circumvention of protection through minimal processing in third countries. The European Commission will have to take into account the origin of the steel when setting annual quotas.
"Europe needs a strong and competitive steel industry built on trade, innovation and fair competition. Combating the negative trade effects of global overcapacity is important, and I welcome the fact that the exemption for imports of Russian steel slabs will not be extended. At the same time, Ukraine should not be punished by EU measures while its steel industry is suffering from direct Russian attacks. Ukraine is not a source of global overcapacity. We must treat them as a future EU member and a strategic partner, and now the EU must fulfill our promise that Ukraine will receive a special status in accordance with the new regulation," said Karin Carlsbro, the European Parliament's key rapporteur on this issue.