Strasbourg: The European Commission has introduced a comprehensive package of trade measures designed to protect the European Union's steel industry. This initiative aims to address the challenges posed by global overcapacity and unfair competition by significantly reducing tariff-free import quotas by 47 percent and increasing out-of-quota tariffs to 50 percent.
According to Kuwait News Agency, EU Industry Commissioner Stephane Sejourne, alongside Trade Commissioner Maros Sefcovic, unveiled the plan to the European Parliament in Strasbourg. Sejourne emphasized the commitment to revitalizing the European steel sector, which has been struggling with intense competition from subsidized companies employing unfair pricing practices. This competition has resulted in the loss of approximately 18,000 jobs in 2024 alone. He highlighted the necessity of these measures to enable the steel industry to invest, decarbonize, and regain competitiveness.
Sejourne outlined that the measures were formulated in collaboration with industrial unions and European producers. The objective is to create an environment conducive to rebuilding a green, independent, and competitive European steel industry. Addressing potential concerns regarding price increases, Sejourne assured that the impact would be minimal, with an estimated increase of around 50 euros per car and 1 euro per washing machine. He clarified that these measures are distinct from the tariffs imposed by former US President Donald Trump on Chinese metal imports, as the EU will continue to adhere to World Trade Organization (WTO) rules while maintaining annual import quotas of 18 million tonnes of steel.
Trade Commissioner Maros Sefcovic reiterated the significance of the steel sector as a cornerstone of Europe's economy. He pointed out that global overcapacity, driven by non-market policies, threatens the long-term competitiveness of the European steel industry. Over the past decade, Europe's steel trade balance has shifted dramatically, moving from a surplus of 11 million tonnes to a deficit of 10 million tonnes, with steel production decreasing by about 65 million tonnes since 2007, and 30,000 jobs lost since 2018.
Sefcovic explained that the new import regime, set to replace the existing safeguard measure expiring in June 2026, aims to restore market balance. Importers will need to disclose the origins of imported steel, and the measures will apply to all non-EEA countries. He expressed confidence that the measures, designed to protect a vital sector and support jobs, would swiftly become binding legislation.
The European steel industry employs around 300,000 individuals and has seen a decline of about 100,000 jobs over the past 15 years. The current downturn places 2.3 million indirect jobs at risk, as reported by Eurofer, the European Steel Association. The new measures will succeed the existing safeguard system, which currently imposes a 25-percent tariff once import quotas are exceeded, and is scheduled to expire next year.