The European Commission has proposed to double the duties on steel imported into the European Union from the current 25 to 50%. The proposal is intended to replace the current safeguard mechanics for the European steel market, which expires in mid-2026.
In order for the fresh rules to enter into force, they will should be adopted by the associate States and the European Parliament. The EC besides plans to drastically reduce the volume of steel quota which can enter the EU at no extra charge.
New import limits
Without duties, 18.3 million tonnes of steel per year will be allowed into the EU - almost half as much as in 2024. Above this quantity, the natural material will be subject to twice the current rate of work of 50%.
In this way, the Union is to return to a more rational level of steel consumption. It presently stands at 67%, whereas the EC estimates that the marketplace situation is good erstwhile it is around 80%.
Control of steel origin
The EC besides wants to require steel importers to declare the site of its smelting and casting. This will let us to realize the planet marketplace situation, especially given the crucial Chinese investments in steel production in many Southeast Asian countries, including Vietnam.
The request to confirm the country of smelting and casting will prevent the entry into the EU marketplace of steel produced in countries with overcapacity and processed in another countries. According to the EC, the steel surplus is 5 times the yearly steel consumption in the EU.
Overproduction problem
The current surplus is 620 million tonnes, and according to the OECD, it is expected to emergence to 721 million tonnes in 2027. China's over-production of steel has led to subsidies which, according to an EU official, "not only lead to unfair trade practices in the EU market, but besides have the effect of pushing natural material into 3rd country markets where steel is sold at lower prices".
The EU steel manufacture is the 3rd largest in the world. It straight employs around 300 000 people and indirectly provides around 2.5 million jobs and its production facilities are located in more than 20 EU associate States.
Global Actions
According to the EC calculations, over-production of steel has led to the failure of between 9,000 and 100,000 jobs in the EU since 2007. Steel duties have besides been introduced by the United States and Canada, which shows the global nature of the problem.
Sources used: "PAP" Note: This article has been edited with the aid of Artificial Intelligence.
