European Commission changes the quota system for steel imports in the EU

The European Commission has published the results of its second investigation looking at the security measures introduced by the European Union in relation to the import of steel products. The comprehensive package, which came into force on July 1, applies all available legal means to protect the European steel industry in the current difficult market environment. The changes take into account the special circumstances prevailing in the market in connection with the coronavirus crisis, as well as expected events. They will ensure that the gradual resumption of activity and return to normal life occurs in an orderly manner.

The adjustments ensure the proper balance between the legitimate interests of all stakeholders within the EU. They can insulate the EU steel industry from the potential consequences of a trade reorientation in a way that is best suited to current conditions, while ensuring sufficient supplies for the steel industries in Europe. Since the launch of the review in February 2020, the Commission has reviewed 300 submissions received from stakeholders, consulted with EU Member States and received broad support for the proposed changes.

In particular, the main changes are as follows:

country-specific quotas will be provided on a quarterly rather than an annual basis. This will help ensure a more stable flow of imports during this phase and will minimize the risk of short-term imports.

A new country-specific quota will be introduced for hot rolled flat products (category 1).

Access to the residual quota for countries that have previously exhausted their country-specific quota will only be allowed to the extent necessary to meet demand. This will help ensure equal access to the EU market for smaller exporting countries.

The list of excluded developing countries is currently being updated based on the most recent stable statistics (2019).

These measures are fully in line with the EU's international obligations and, as required by the applicable WTO rules, the affected non-EU countries were consulted earlier this month.

The Commission introduced initial safeguards for steel imports in July 2018. These measures are aimed at preventing economic damage to European steel producers, given the risk of increased imports associated with US trade restrictions on steel and aluminum products. The Commission confirmed the initial interim measures in early 2019 for the period until the end of June 2021. The first market evolution review was completed in September 2019. Announced