Great Britain extended the exemption of Ukraine from tariffs on hot-rolled steel

The UK government has decided to extend the suspension of trade dispute resolution measures regarding imports of hot-rolled flat products and coils from Ukraine, according to the UK Remedy Authority (TRA).

The suspension of anti-dumping measures against certain types of Ukrainian-made hot-rolled flat products is now in effect for another 12 months until May 30, 2024.

The suspension has been in effect since August 2022. Prior to the suspension, the anti-dumping duty was £50.631 per tonne ($63) against Metinvest Group and other Ukrainian producers.

TRA also reviewed anti-dumping measures against imports of these steel products from several countries, including Russia, Ukraine, Brazil and Iran. In its preliminary findings, the TRA proposed extending the measures to imports from China, Russia, Brazil and Iran, but canceling them for Ukraine.

TRA concluded that the dumping of steel products from Ukraine is unlikely to happen again due to the reduction of the country's production capacity and limited export opportunities as a result of the ongoing war with Russia. In addition, TRA considered Ukraine's need to rebuild its steelmaking operations and domestic demand for steel to rebuild the country's infrastructure.

Steel production in Ukraine in 2022 was down 70.7% from pre-war levels, with two large steel plants destroyed and two others running at reduced capacity.
Damage to Ukraine's energy infrastructure caused by Russia's invasion led to power outages and a further reduction in steel production.

In terms of export opportunities, Ukraine is facing challenges due to Russia's blockade of its deep-sea ports in the Black Sea. Rail transportation is considered an alternative for export, but there are problems with the gauge in Ukraine. There are plans for an intermodal transport corridor, potentially supported by the Italian government, that could help unlock the export of goods, including steel, and improve Ukraine's export potential.

At the same time, Ukrainian exports of hot-rolled flat products to the UK have traditionally been minimal and have not had a significant impact on the UK market in the past.

Namely, from 2018 to 2022, imports of hot-rolled flat products to the UK from Ukraine ranged from 30 to 2121 tons, which is less than 0.01% of total imports from both EU and non-EU countries. In 2020, it amounted to 0.16%, and in 2021 there was no import of hot-rolled flat products from Ukraine.