EU considers expanding measures to protect metallurgy

The European Commission (EC) has announced a possible expansion of safeguards applicable to the import of certain steel products, including some from Vietnam, according to the Vietnam Trade Funds Authority.

On February 1, 2019, the EU introduced final protective measures for some steel products. The measure currently in force consists of a tariff quota based on historical imports, applicable to 26 categories of goods. Upon exhaustion of the relevant tariff quota, an additional duty of 25% will be charged.

The protective measure was introduced for an initial three-year period until June 30, 2021.

According to a February 26 notification from the European Commission, the Commission received a substantiated request from 12 member countries on January 15 asking to examine whether the current protective measures should be extended.

The request contains evidence that a protective measure is still needed to prevent or correct serious injury. The request argues that the risk of trade rejection persists, and if this measure is lifted, the industry will face an influx of imports that will have a very negative impact on its economic performance.

Accordingly, the investigation will focus on its assessment, in particular whether protective measures are still needed to prevent or eliminate serious injuries, whether there is evidence that union producers are adjusting and whether the extension will be in the union's best interest. The investigation will also determine the appropriate length of the extension (if any).

The decision was expected to be made no later than June 30th.

According to the Vietnam Trade Funds Authority, among Vietnam's steel products exported to the EU, four product categories are currently subject to tariff quota safeguards, including cold rolled sheets of unalloyed and other alloys, organic coated sheets, stainless cold rolled sheets and strips, as well as seamless pipes.

Vietnam's Trade Funds Authority has urged relevant industry associations and manufacturers to file documents with the EU upon request, adding that the investigation will be closely monitored to provide updated information and take action to protect the legal rights of the Vietnamese steel industry.

According to the Vit Nam Steel Association, Vietnam's steel exports to the EU have accounted for only about four percent of Vietnam's total steel exports in recent years.

Customs statistics showed that Vietnam exported 9.86 million tons of steel in 2020, worth about US $ 5.26 billion.