The European Union is mulling a proposal to introduce a new trade defence regime for steel to replace the current safeguard system expiring on 30 June 2026, informed sources familiar with a draft European Commission document told Kallanish.
The draft focuses on addressing the negative trade-related effects of global overcapacity on the EU steel market. The proposal includes a “melt and pour” origin requirement, obliging importers to provide evidence – such as a mill certificate – showing where the steel was originally melted and poured. Requiring proof of the country of “melt and pour” will prevent steel made in overcapacity countries from entering the EU market through further processing elsewhere, and also enhance transparency in the domestic steel import supply chain.
EU proposed quotas are to be set at 18.3 million tonnes/year, based on the 2013 import market share, and allocated by product categories using 2022-24 trade patterns, according to the document. These quotas will be managed quarterly without carry-over. Imports above quota levels will face a 50% duty, compared with the current safeguard TRQ system that applies a 25% rate.
Under the plan, the EC will retain powers to amend quotas and technical rules in response to market shocks.
The measures are aligned with the Steel and Metals Action Plan, the EU Competitiveness Compass, and the Budapest Declaration on industrial renewal, the source said citing the document.
Natalia Capra France , Elina Virchenko UAE
