TRA Recommendation on Corrosion Resistant Steel Accepted by UK Government
On 20 February 2025, the UK government announced that it had accepted the recommendation of the Trade Remedies Authority to continue imposing anti-dumping duties on imports of Corrosion Resistant Steel from China for a further five years. CRS, which plays a crucial role in various industries including construction and manufacturing, is used to create rustproof steel for products such as domestic appliances, steel vents, and fencing.
The decision comes after the TRA conducted a transition review of the measure, which was initially imposed following concerns over dumping of Chinese-made CRS into the UK market. The review, which began in February 2023, concluded that without the anti-dumping measure, the likelihood of dumping from China would recur, causing significant harm to UK industries.
Impact on the UK Economy and Industry
The TRA's assessment highlighted the substantial economic impact of UK-based CRS producers, which contribute approximately £63 million annually to the UK economy. The review also considered the impact on UK industries’ ability to meet decarbonisation and net-zero goals. According to the TRA, removing the anti-dumping measure would directly impede these industries' efforts to proceed with their sustainability initiatives.
Anti-Dumping Duty Rates
In its final recommendation, the TRA proposed that the existing duty levels on CRS imports from China be maintained. These duties range from 17.2% to 27.9% and will remain in effect until at least 9 February 2028. This move is seen as a safeguard for domestic CRS producers and their ability to compete fairly in the market.
Historical Context of CRS Imports
The imposition of anti-dumping duties in 2018, following similar European Union measures, led to a dramatic reduction in Chinese CRS imports to the UK. The volume of CRS imports from China fell by 96%, from 363,000 metric tons in 2016 to just 16,000 metric tons in 2018. This sharp decline has been attributed to the successful implementation of the anti-dumping measure.
Role of the TRA in Trade Protection
The TRA, established post-Brexit, investigates whether trade remedy measures, like anti-dumping duties, are necessary to protect UK industries from unfair import practices. Before Brexit, the European Commission handled such investigations on behalf of the UK. However, the UK now independently reviews trade remedy measures to determine their suitability for the country’s specific needs. These measures are allowed under World Trade Organisation rules, designed to prevent market distortion caused by unfair trade practices.
Corrosion Resistant Steel Specifications
The CRS under review is flat-rolled steel, typically iron or alloy-based, and deoxidized with aluminium (aluminium killed). This steel is then coated using a process known as hot-dip galvanisation, where it is dipped in molten zinc, aluminium, or magnesium, giving it corrosion resistance. The material is used in various applications, including construction, automotive, and home appliances.
Key Takeaways:
• UK Government Action: Accepted TRA's recommendation to maintain anti-dumping duties on CRS imports from China for five more years.
• Duty Range: The existing duty levels will remain at 17.2% to 27.9% until at least 9 February 2028.
• UK CRS Industry Impact: UK CRS producers contribute £63 million annually to the economy and are crucial for decarbonisation and net-zero efforts.
• TRA's Review Findings: Without the duties, Chinese CRS imports would likely flood the UK market, damaging domestic industries.
• Historical Import Reduction: CRS imports from China dropped by 96% following the 2018 imposition of anti-dumping duties.
• TRA's Role Post-Brexit: The TRA now independently handles trade remedy measures, protecting UK industries from unfair imports.
• Corrosion Resistant Steel: CRS is steel coated with zinc, aluminium, or magnesium, used in manufacturing rustproof products like domestic appliances and fencing.
