European Commission to make adjustments in safeguard measures

The European Commission (EC) notified WTO about some changes that will come into effect from 1 July 2022, after a review of the EU safeguard system. The concerned product categories include quarto plates, angles and structures.

Liberalization rate of tariff-rate quotas (TRQ) was the highlight amongst the changes. As of July, the same would increase by 4% against the previously set rate of 3%, SteelMint learnt from the official document release.

Furthermore, the EC has lifted the country specific quotas for heavy plates both alloyed and non-alloyed, along with angles, shapes and sections of iron or non-alloy steel. Thus, from July there will be a single quota rate for these products, ensuring both flexibility and availability.

The investigation on these products showed that Ukraine was the major supplier holding about 33% of the total quota volume and used the limits to the high levels. However, after the Russian invasion of Ukraine, the country had not made any exports. Hence the decision was taken to maintain supplies of the products, without undermining the interest of the domestic producers.

Meanwhile, the commission has also updated its list of developing countries exempt from the safeguard measures. For instance, Vietnam was added to the list of countries with country-specific TRQ for hot-dipped galvanised (HDG).

Apart from the above, the EC has also looked into changes in the US Section 232 and any adjustment likely to be made in EU safeguard measures in accordance with it.

"The European Union concluded that the changes to the US Section 232 measure did not justify any adjustment to the EU Safeguard measure. Therefore, because no adjustments are proposed in this respect, the detailed reasoning on this section will be included in the legal act that is currently subject to the EU's internal decision-making and which will be published before 1 July 2022," read excerpts in the official document.

Also, implementation of a few changes in the utilization of residual quotas is likely to happen in the final quarter of the current year.