EU Slashes Hike in Steel Import Quotas Following Protests

SEATTLE (Scrap Monster): The European Commission (EC) decided to reduce the raise in tariff-free steel quotas from 5% to 3%, aimed at protecting the domestic steel sector from spike in imports caused by imposition of U.S. tariffs.

The proposals will be submitted to EU members for approval, after necessary discussions with affected WTO members. The decision will be effective from October this year. It must be noted that the 5% increase had took effect on July 1, 2019.

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The decision by the EC follows protests by various industry participants. Top steel executives from steel industry firms including Outokumpu, Salzgitter and ArcelorMittal had urged the Commission to either dump or postpone the 5% hike. It must be noted that the EU imports of finished steel products had recorded 12% surge in 2018, despite safeguard measures imposed by the EU authorities.

Further, the Commission plans to curb imports from any one country that exceeds 30% share of imports of hot rolled flat steel during a quarter. This may likely impact imports from Turkey- the primary exporter of these products to the EU region.