CBM Criticises Steel Safeguarding Measures and Their Impact
The intention behind steel safeguarding measures was to protect domestic steel producers from unfair foreign competition.
SEATTLE (Scrap Monster): The UK government's recent changes to steel safeguarding measures have created widespread disruption across the manufacturing supply chain.
By ignoring key Trade Remedies Authority (TRA) recommendations and imposing abrupt measures with reduced import quotas, businesses are facing operational bottlenecks, port congestion, and financial uncertainty. These revised steel safeguarding measures are now being labelled a 'tsunami' of issues by industry leaders.
Industry Responds to Sudden Import Quota Changes
The Confederation of British Metalforming (CBM), which represents over 200 companies across the metals sector, warns that the Secretary of State’s decision to drastically reduce residual quotas—with some cut from 70% to just 15%—is damaging UK manufacturing and may lead to significant job losses.
Trade Remedies Authority’s Guidance Overridden
The Trade Remedies Authority (TRA) originally advised implementing the changes in October to allow businesses to prepare. However, the government enforced the new quotas from July 1st, triggering major delays at ports, suspended imports, and blocked deliveries throughout the country.
Impact on UK Supply Chain and Jobs
“We are witnessing first-hand the detrimental effects of steel safeguards on the operations of our members,” said Stephen Morley, CBM President. “Delivery delays are already at four weeks or more, with some vessels being rerouted to alternative ports. The disruption is severe and ongoing.”
Rising Operational Costs and Logistical Challenges
“The suspension of imports is creating a domino effect,” added Morley. “Businesses are absorbing added transport costs, supply chain instability, and rising overheads—all during a time when manufacturers are already navigating post-COVID challenges and inflationary pressures.”
Unintended Consequences of Steel Safeguarding Measures
The intention behind steel safeguarding measures was to protect domestic steel producers from unfair foreign competition. However, the reality has been damaging for downstream manufacturers, with many caught in a complex web of customs delays and quota confusion.
Call for Urgent Government Reassessment
CBM is now urging the government to reassess its approach and collaborate more closely with industry stakeholders. They stress the need for a balanced solution that safeguards UK steel production without paralysing the wider manufacturing ecosystem.
Steel Policy Needs Long-Term Strategic Thinking
“These consequences were entirely foreseeable,” said Morley. “TRA’s original timeline was carefully thought out. Ignoring it has led to needless disruption. We need smarter, balanced policy that supports the entire value chain—from steelmakers to the many businesses that rely on them.”
Courtesy: www.manufacturingmanagement.co.uk