EU Members Endorse Definitive Steel Safeguard Measures

SEATTLE (Scrap Monster): The EU member states have extended support to the definitive steel safeguard measures proposed by the European Commission. Accordingly, the definitive measures will be implemented at the beginning of next month. Meantime, the provisional safeguard measures on 23 steel products, introduced in July last year, will be in effect until 4 February, 2019, the Commission noted. Also, the new definitive measures, aimed to secure traditional trade flows, will be valid until July 2021, it added.

The safeguard measures follow pleas by several regional governments to implement stricter actions to protect the regional steel sector from being flooded by cheap steel imports from other parts of the world. Incidentally, the imposition of 25% tariffs on imported steel by the U.S. administration had resulted in steel originally destined to that country being rerouted to other destinations including the EU countries, thereby causing material damages to domestic steel industry.

The definitive safeguard measure proposes country-specific quotas for major exporting countries. Further, it also puts forward quarterly global quotas for all other countries. The quotas are limited to a three-month period, in order to limit stockpiling. Once the quotas are filled, a tariff rate of 25% will be imposed.

Meantime, reports suggest that the measures have invited widespread criticism from steel buyers including the European Automobile Manufacturers’ Association and a section of steel producers as well.