EU prolongs safeguard measure on steel for three years

A duty of 25% will continue to apply when the level of traditional trade flows is reached

The European Union (EU) announced that it is prolonging for three additional years the safeguard measure currently in place on imports of certain steel products. The prolongation will apply from July 1, 2021. The initial safeguard measure was introduced in July 2018 to protect the EU steel market against trade diversion, following the U.S. decision to impose duties on imports of steel into the U.S. market. The U.S. measures are still in force.

The safeguard measure takes the form of Tariff-Rate-Quotas (‘TRQs’) reflecting traditional trade flows from third countries, above which a 25% duty is levied on imports. The European Commission has reviewed the functioning of the measure twice – in October 2019 and July 2020.

The decision to extend the safeguard measure follows an investigation requested by 12 EU Member States on whether the conditions to prolong are fulfilled. In accordance with the requirements under EU and WTO rules, the Commission found in its investigation that the safeguard measure continues to be necessary to prevent or remedy serious injury to the EU steel industry, and that the EU industry is adjusting to a market situation in the EU with higher level of imports.

In line with WTO rules, the duty-free import quotas of steel will also be increased by 3% annually. The Commission will also initiate a review if the US introduces significant changes to its ‘Section 232’ measure on steel.

Posted in ,