Reduced quotas for duty-free imports of steel imports to the European Union enter into force on July 1.
The aim of the new rules is to protect the European market from global overproduction and cheap competition, particularly from China, India, and Turkey.
Under the new rules, the duty-free import quota will be limited to 18.3 million tons per year. That is about 47% less than before. Quantities exceeding this limit will be subject to a tariff of 50%, twice as much as before.
Half of the available duty-free quota is reserved for steel from countries with a free-trade agreement (FTA). The remaining half is available to all trading partners with or without a trade deal with the EU.
“We are providing market participants with predictability through clear and transparent quota distribution rules, while applying a fair and objective methodology,” said EU Trade Commissioner Maroš Šefčovič.
The approach strikes a balance between the EU’s commitment to its free trade deals, the rules of the World Trade Organization (WTO) and the bloc’s push to diversify critical supply chains, said Šefčovič.
The EU is the world’s third-largest steel producer, according to EU figures. Around 300,000 people are directly employed in the sector.
Due to import restrictions imposed by other countries and global overcapacity, the EU market has, however, become the main destination for the global steel surplus.
Global steel overcapacity is expected to rise to 721 million tons by 2027, more than five times the EU’s annual consumption.