Introduction:
On Tuesday, February 25, 2025, the UK Trade Remedies Authority (TRA) released its initial findings on a critical matter concerning the protection of the UK steel industry. The TRA has recommended the continuation of anti-dumping and countervailing measures on organic coated steel (OCS) imported from China for an additional five years, extending until May 4, 2029. These measures were first introduced in 2013 to counteract unfair trade practices, including dumping and subsidization by Chinese exporters. If accepted, this extension could provide a vital safeguard for the UK's steel industry, specifically Tata Steel UK (TSUK), the only UK-based producer of OCS, and other domestic businesses reliant on the sector.
Background on Organic Coated Steel (OCS)
Organic coated steel (OCS) is a vital material used in a wide range of industries, including construction, metal furniture, domestic appliances, and heating and ventilation systems. The durability and versatility of OCS make it indispensable for structures and products requiring protection against the elements. In the UK, the primary producer of OCS is Tata Steel UK (TSUK), which manufactures the product at its Shotton facility in North Wales. TSUK not only plays a crucial role in meeting domestic demand but also contributes significantly to the UK economy, generating approximately £222 million annually and employing around 8,100 people.
Anti-Dumping and Countervailing Measures Explained
Anti-dumping measures are designed to prevent the sale of goods at unfairly low prices in foreign markets, usually below the normal value of those goods in the exporter’s home market. The TRA’s initial findings assert that dumping of OCS by Chinese exporters has occurred in the past and could continue if the measures are lifted.
Countervailing duties, on the other hand, aim to address the subsidization of products by foreign governments. These subsidies can lead to an unfair competitive advantage for producers in the subsidizing country, which, in turn, can harm domestic industries. The TRA found that the imposition of countervailing duties on Chinese OCS imports has been effective in protecting UK producers like TSUK.
The current anti-dumping duties on Chinese OCS imports range from 5.9% to 26.1%, while countervailing duties range from 13.7% to 44.7%, depending on the specific exporter. These measures have effectively kept imports below 1,000 metric tons annually since 2013, a clear indication of their impact in curbing Chinese competition.
Impact of the Measures on the UK Steel Industry
The continuation of these measures is considered vital for Tata Steel UK (TSUK), which is the sole producer of OCS in the UK. TSUK’s Shotton facility in North Wales is central to the country’s OCS production. By safeguarding domestic steel production, the anti-dumping and countervailing measures not only protect the industry’s economic contributions but also preserve a significant number of jobs across the UK. TSUK’s contribution to the economy is substantial, and maintaining a stable market for OCS helps ensure the ongoing viability of the company and its workforce.
Moreover, the measures play an essential role in maintaining market fairness by preventing the influx of subsidized, unfairly priced OCS from China. By doing so, they also provide an avenue for UK manufacturers to remain competitive and sustain their production lines without the threat of being undermined by below-cost imports.
TRA’s Initial Findings and Future Steps
The TRA’s Statement of Essential Facts (SEF), published on February 25, 2025, details the findings of the authority’s investigation into the effectiveness of the current trade remedy measures. The investigation covered data from the period of April 2023 to March 2024, with the injury assessment examining data from April 2020 to March 2024.
The SEF concluded that the removal of anti-dumping and countervailing measures would likely lead to the recurrence of dumping and subsidization, which would cause material injury to the UK steel industry. As such, the TRA has proposed the extension of these measures for another five years.
Businesses that may be affected by these findings are encouraged to submit their comments to the TRA by March 18, 2025, through the authority’s public file. The final decision will be made after the TRA considers the feedback from interested parties and makes its final recommendation to the Secretary of State for Business and Trade.
Trade Remedies Authority (TRA) Role in the UK
The Trade Remedies Authority (TRA) is the UK’s body responsible for investigating unfair import practices, including dumping and subsidization, and determining whether new trade remedy measures are necessary to protect UK industries. Prior to Brexit, trade remedy investigations were handled by the EU Commission on behalf of the UK. However, following the UK’s departure from the EU, the TRA took over the responsibility of reviewing and enforcing trade remedies for the country. As part of this transition, the TRA has been reviewing measures inherited from the EU to assess their suitability for the UK market.
Key Takeaways:
• The UK Trade Remedies Authority (TRA) has proposed extending anti-dumping and countervailing measures on organic coated steel (OCS) imports from China until May 2029.
• The TRA’s investigation found that removing these measures could harm the UK steel industry, particularly Tata Steel UK (TSUK), which is the only producer of OCS in the country.
• Anti-dumping duties on Chinese OCS imports range from 5.9% to 26.1%, and countervailing duties range from 13.7% to 44.7%.
• These measures have kept Chinese imports of OCS below 1,000 metric tons annually since their introduction in 2013.
• Tata Steel UK contributes £222 million annually to the UK economy and employs around 8,100 people across its operations.
• Interested businesses have until March 18, 2025, to submit comments to the TRA regarding these findings.
• The TRA is responsible for investigating unfair trade practices and protecting UK industries from the effects of dumping and subsidization.
