Several EU member states have called for broader coverage of downstream steel-containing products and special consideration for Ukraine under the bloc’s new steel trade defence regime, as the legislation moves towards formal adoption by the Council of the European Union, Kallanish notes.
Spain argues that the scope of the new measure remains insufficient to protect European industry, warning that steelmakers in third countries could circumvent restrictions by exporting downstream products with a very high steel content. The country urged the European Commission to prioritise the planned review of the regulation and ensure that downstream sectors are adequately covered.
Estonia, Latvia and Lithuania have expressed concern that Ukraine’s exceptional wartime circumstances had not been sufficiently reflected in the regulation. The three countries say Ukraine should have remained exempt from the measure, in line with the current steel safeguard framework, and call for its situation to be fully considered when allocating country-specific quotas. They note that Ukraine’s steel sector remains a critical source of export revenue despite the destruction, damage and occupation of production facilities caused by the war.
In a separate joint statement, Sweden, Finland, Denmark, Estonia, Latvia and Lithuania support action against global steel overcapacity but stress the need to balance protection for EU steel producers with the competitiveness of downstream manufacturing industries. The group emphasises the importance of reflecting Ukraine’s circumstances in future implementation and quota allocation decisions.
The comments were submitted as statements to be entered into the council minutes ahead of the formal adoption of the regulation addressing the negative trade-related effects of global overcapacity on the EU steel market. The legislation, which will replace the current steel safeguard regime from 1 July, was approved by the European Parliament on 19 May and is expected to be formally adopted by the council shortly. Estonia voted against the compromise, while Portugal abstained.
