The European Council has adopted its mandate to negotiate with the European Parliament on the new steel trade regime, with certain amendments introduced such as allowing unused quota carry-overs and reviewing the measure’s scope after 18 months.
The requirement for importers to provide evidence on the country of melt and pour will meanwhile apply from 1 October 2026, Kallanish notes.
The Council says it has incorporated Union interest as a guiding principle to ensure explicit consideration for all economic operators and final consumers.
Unused tariff quota volumes in one quarter will be permitted to be carried over to the next quarter within the same yearly period of application of the tariff rate quota. When amending quotas, policymakers will also need to consider potential substantial price increases seriously undermining the competitiveness of downstream industries.
The Commission can, via a delegated act, adjust tariff quota volumes, taking into account the EU interest and a series of elements. The Council clarified that the total value of these adjusted quotas must be capped to remain between 15.2 and 22.2 million tonnes.
The melt and pour implementation date will meanwhile provide a transition period for industry and customs agencies to adjust to the new rule, the Council notes.
Within two years, the Commission will have to assess whether to designate the country of melt-and-pour as the basis for country-specific tariff quota allocations. If the Commission concludes it is necessary to do so, it will present a new legislative proposal to that effect.
As for the scope review after 18 months, the Commission will launch a consultation process to this end with relevant stakeholder by 1 October 2026.
The period for the first overall review of the regulation’s effects on the steel market and the EU interest has been shortened to four years from the date of entry into force, with subsequent evaluations every two years thereafter. Council also added further attention in the review for the impacts on downstream industries.
A new provision also requires the Commission to make an online contact point available for EU economic operators to request relevant information concerning the implementation of this regulation.
Once the European Parliament adopts its position, the co-legislators will start negotiations with a view to finalising the work on the text. The European Parliament’s Committee on International Trade (INTA) is likely to vote on the amended proposal in January before there is a vote in plenary (see Kallanish passim). The regulation will enter into force once adopted by both institutions and published in the official journal.
Commission negotiations with WTO members and FTA partners on access to the EU steel market are understood to require a separate mandate, which is yet to be provided by the Council.
