The Council of the European Union has adopted its negotiating mandate on a new regulation aimed at addressing the trade-related effects of global steel overcapacity on the EU market.
The proposed framework is intended to replace the current steel safeguard measures, which are set to expire on 30 June 2026.
The Council’s position confirms the EU’s determination to maintain a high level of protection for the European steel industry, while introducing additional flexibility and safeguards for downstream steel users. This balance reflects concerns consistently raised by EUROMETAL and its members regarding the functioning of trade defence instruments and their impact along the steel value chain.
Key elements of the Council mandate
The mandate largely preserves the core elements of the European Commission’s proposal. It provides for a significant reduction in tariff-free import volumes to 18.3 million tonnes per year, representing a 47% reduction compared to 2024 steel safeguard quotas. It also increases the out-of-quota duty to 50%, compared to 25% under the current safeguard regime. At the same time, the Council has introduced several amendments to improve legal clarity, flexibility and consideration of Union interest, notably for steel-using industries.
Stronger recognition of downstream industries
A central change in the Council’s mandate is the explicit reinforcement of Union interest as a guiding principle. This requires the European Commission to take into account the economic impact on downstream industries and final consumers when allocating tariff rate quotas, applying bilateral safeguard measures or adjusting quota volumes. In addition, the Council has introduced a new criterion obliging the Commission to consider situations where substantial price increases could seriously undermine the competitiveness of downstream industries when amending quotas.
Increased quota flexibility
To improve the functioning of the tariff quota system, the Council has allowed unused quota volumes in one quarter to be carried over to the following quarter within the same annual quota period. The mandate also clarifies that, while the Commission may adjust tariff quota volumes through delegated acts, the total volume must remain within a defined range of 15.2 to 22.2 million tonnes, ensuring a greater degree of predictability for market operators.
Melt-and-pour requirements: phased and reviewed
To address circumvention risks and enhance supply chain transparency, the regulation introduces a requirement for importers to provide evidence of the country of melt and pour. The Council has added important clarifications to its implementation. The requirement will apply from 1 October 2026, allowing economic operators and customs authorities sufficient time to adapt. Within two years, the Commission must assess whether country-specific tariff quotas should be based on melt-and-pour criteria and, if necessary, present a new legislative proposal. The Council also underlined the need for the Commission to consult relevant stakeholders before introducing any new requirements, with particular attention to administrative burden and practical feasibility.
Review, transparency and stakeholder engagement
Compared to the Commission’s proposal, the Council has brought forward the assessment of a potential extension of the regulation’s scope to 18 months after entry into force. It also requires the Commission to launch a stakeholder consultation process by 1 October 2026. The first overall review of the regulation’s effects on the steel market and on Union interest has been shortened to four years, with subsequent evaluations every two years thereafter, including a specific assessment of impacts on downstream industries.
In addition, a new provision requires the Commission to establish an online contact point for EU economic operators to request relevant information concerning the implementation of the regulation.
Next steps
Once the European Parliament adopts its position, negotiations between the co-legislators will begin with a view to finalising the text before the expiry of the current safeguard measures. The regulation will enter into force following adoption by both institutions and publication in the Official Journal of the European Union.
