EU launches review of steel import safeguard quotas

Mysteel Global: The European Union (EU) has announced a review of its safeguard measures on certain steel product imports to reassess the allocation and management of tariff-rate quotas, Mysteel Global learned from a legal document published in the Official Journal of the European Union on 17 December.

The EU's current safeguard measures, introduced in July 2018 and initially set to expire in June 2024, were extended until June 2026 following a European Commission decision on 25 June this year. This decision followed an investigation prompted by 14 EU member states.

The measures include tariff-rate quotas that allow duty-free imports up to specific volumes, with a 25% duty imposed on volumes exceeding the quotas. The safeguard has undergone technical adjustments effective 1 July, 2024.

However, just five months later, on 29 November, the European Commission received a substantiated request for a review of the measures that highlighted "significant" changes in circumstances, particularly a contraction in EU steel demand and a mismatch with current duty-free quota levels. Additionally, a surge in China's steel exports to major regions has redirected exports from other markets toward the EU, intensifying competition, the release said.

The review will focus on 28 categories of steel products, including rebar, non-alloy and alloy sheets, tubular products, stainless flats, and other steel varieties. The Commission has invited interested parties to submit their views, information, and supporting evidence in writing by January 10, 2025.

The review process is expected to conclude by 31 March, 2025. Any resulting decisions, including potential changes to tariff-rate quota volumes, may take effect starting 1 April, 2025.

According to data from China's General Administration of Customs, China exported 3.35 million tonnes of steel to the EU's 27 member countries in the first 10 months of 2024, up slightly from 3.19 million tonnes during the same period last year.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.