UK to challenge EU over steel import quota reductions
14 reported
UK Business Secretary Peter Kyle is scheduled to meet EU Trade Commissioner Maroš Šefčovič in Brussels on Friday to raise concerns about EU plans to reduce tariff-free imports of British steel. The UK steel industry has warned of “devastating” consequences from the new quota system, which will cut overall tariff-free imports from non-EU countries by 47% on 2024 levels starting July 1. The UK, after Brexit, must design its own quota and tariff regime, also for July 1, and industry leaders on the EU side worry about retaliatory measures. The European Steel Association Eurofer has written to Šefčovič protesting that the UK is setting new quotas for the EU at “extreme low levels,” with the EU receiving only 9% of previous hot coil imports, 4% of tin mill, and 3% of merchant bars. Both sides are introducing safeguards to protect their industries from Chinese competition, but fears exist that both will suffer collateral damage while China pivots to finished steel products. The meeting comes amid fading hopes for a strategic “steel club” alliance between the EU and UK.
What’s reported
UK Business Secretary Peter Kyle will meet EU Trade Commissioner Maroš Šefčovič in Brussels on Friday.
The EU plans to cut overall tariff-free steel imports from non-EU countries by 47% on 2024 levels from July 1.
The UK steel industry previously warned of “devastating” consequences from the new EU quota system.
The UK must design its own quota and tariff regime for July 1 after Brexit.
Eurofer wrote to Šefčovič protesting that the UK is setting new quotas for the EU at “extreme low levels,” with EU receiving 9% of hot coil imports, 4% of tin mill, and 3% of merchant bars.
Eurofer Director General Axel Eggert said UK provisional quotas would slash EU exports of organic coated products by 80%, rebar steel by 45%, and steel rails by 38%.
Safeguards are being introduced on both sides to protect industries from Chinese competition.
The EU is slashing foreign imports by 50% and the UK by 60%.
Several third countries, including the UK and Ukraine, are “expressing displeasure,” per one EU source.
One EU diplomat said quotas will bring economic costs for both sides, with slightly higher costs for the UK.
UK steel industry sources say the British government’s 60% reduction is flexible and can be changed if reciprocated by the EU, while the EU quota is strictly capped at 50%.
Hopes for a strategic “steel club” alliance between the EU and UK are fading.
One EU diplomat said the US is not interested in helping the UK or the EU on a steel club.
Kyle’s meeting is scheduled for Friday morning.
Key figures
Peter Kyle, UK business secretary
Maroš Šefčovič, EU trade commissioner
Axel Eggert, Eurofer director general
Sources: The Guardian
