Eurofer Advocates for Stricter Steel Import Quotas and Duties
The European steel association Eurofer is advocating for significant changes to the existing safeguard measures on steel imports into the European Union. The organization is requesting both a reduction in the safeguard quota volumes and an increase in import duties on steel products that exceed these quotas. These proposed adjustments come as part of a review of the current safeguard measures that aim to protect European steel producers from unfair competition posed by cheaper imports.
Yuriy Rudyuk, a partner at the law firm Van Bael & Bellis, shared that Eurofer’s request stems from a decline in steel demand within the EU. According to Eurofer’s data, apparent steel consumption has decreased by nearly 15% between 2017 and the projected volumes for 2024. This reduced demand has made Eurofer push for a more restrictive approach to steel imports in order to bolster the EU's domestic steel industry.
Calls for Increased Safeguard Tariffs
One of Eurofer’s key proposals is to increase the safeguard tariff on steel imports that exceed the quota volumes. Currently, the safeguard tariff is set at 25%, but Eurofer is calling for this tariff to rise to a range of 32% to 41%. This tariff increase would help reduce the influx of foreign steel into the EU market, particularly from countries with lower production costs that can flood the market with cheaper materials.
The tariff increase is designed to level the playing field for EU steel producers, who have struggled to compete with cheaper imports, especially from countries that benefit from lower production costs and government subsidies. Eurofer believes that increasing the tariff will provide additional protection to EU steel manufacturers, allowing them to regain competitiveness in the global market.
Specific Quotas and Limitations on Exemptions
Eurofer has also proposed several adjustments to the existing safeguard measures concerning quotas. One of the most significant changes requested is the introduction of a 15% cap on the volume of quotas available to countries that already benefit from “other countries'” quotas. This is particularly important for materials like hot-dipped galvanised steel, which have been historically dominated by Vietnam. By limiting access to these quotas, Eurofer hopes to ensure a fairer distribution of steel imports and prevent one country from dominating a significant portion of the EU market.
Additionally, Eurofer is requesting the introduction of more country-specific quotas to prevent over-supply from any single nation. Under the current system, there are no limits on how much steel can be imported from countries with relatively small historical supply to the EU, including several developing nations. Eurofer wants to end this practice, especially by eliminating developing countries exemptions from the safeguards. These exemptions allow certain countries with limited exports to the EU to be free from quota restrictions, which Eurofer believes gives them an unfair advantage.
Potential Impact of the Proposed Changes
If Eurofer’s requests are granted, these changes could have a significant impact on steel imports into the EU. The reduction in quota volumes would make it more difficult for foreign producers to access the European market, particularly those from countries with lower steel production costs. The increase in safeguard tariffs would also raise the price of imported steel, making it more expensive for consumers and manufacturers within the EU.
For specific steel products like hot-dipped galvanised steel, the introduction of more restrictive quotas and a cap on imports from countries like Vietnam could lead to a decrease in the availability of these materials in the EU market, particularly for industries that rely on them. This could have a ripple effect on downstream industries such as construction, automotive, and manufacturing, where galvanised steel is in high demand.
However, the increased duties and quota reductions are also likely to provide relief to domestic steel producers, who have faced challenges in competing with cheaper imports. By reducing competition from foreign steel suppliers, Eurofer aims to stabilize the European steel industry and ensure its long-term viability.
The Ongoing Measures Review
The European Commission is currently conducting a review of the safeguard measures, and the commission has invited steel producers and users to submit their feedback on the ongoing review. The deadline for submitting responses was January 10, 2025. Eurofer’s request is part of a broader effort to refine and strengthen the safeguards to reflect current market conditions and ensure fair competition within the EU steel sector.
While Eurofer did not respond to requests for comment on its proposals, the organization’s push for stricter measures reflects growing concerns over the impact of cheap imports on the European steel market. The EU steel industry has long been a crucial part of Europe’s industrial base, and Eurofer’s efforts aim to protect that vital sector from external pressures.
