EU Lifts Safeguards on Brazilian Steel Products

SEATTLE (Scrap Monster): The European Union has removed safeguards on steel profiles and stainless steel from Brazil. This comes as part of adjustments to safeguards imposed last year in the wake of rising imports on account of diverted trade due to high tariffs imposed by Trump administration on steel imports into that country.

According to the latest plan submitted by the European Commission (EC) to the World Trade Organization (WTO), the investigations carried out from mid-May this year suggests that safeguard measures have worked well during the initial one-year period since its implementation. The adjustments are aimed at making them more effective, in full compliance with the WTO rules, it said.

The withdrawal of safeguards for Brazilian steel profiles and stainless steel will make it possible for both products to increase market presence.

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The proposed plan will be initially discussed with all affected WTO members. Upon approval by the members, it will be submitted for approval by EU members. It is expected to come into effect by October this year, EC noted.

Meantime, government statistics indicate that Brazil’s crude steel production witnessed a decline of 4.3% year-on-year to total 19.7 million tonnes (Mt) during the first seven months of 2019. The domestic steel sales too dipped marginally by 0.5% to 10.7 Mt. The apparent steel consumption edged lower by 1.5% over the previous year to total 12.1 Mt. The exports were down by 1.8% to 7.72 Mt, whereas the imports totaled 1.46 Mt, down by 1.6% year-on-year.