The Council of the European Union has detailed its position on the proposed steel trade regulation intended to replace the safeguard measure, Kallanish notes.
This follows an agreement between Council and Parliament earlier in April.
By 31 December 2026, the Commission must assess whether to amend the scope to cover specified products including cast iron tubes, certain wire products and forged bars. By 30 June 2027, it must assess whether to cover additional products made of, or containing, a significant amount of steel, including with priority downstream iron and steel products currently outside the scope.
The total annual quota volume is set at 18,345,922 tonnes, with a 50% out-of-quota duty. Product-category quota allocations are to be based on import shares over the 2022-2024 period.
The Commission would also have powers to amend total quota volumes within a range of 14.4 million tonnes to 22.2 million tonnes, taking into account Union interest and factors including demand, import market shares, developments in overcapacity, the decarbonisation path of the EU steel sector, supply availability and defence policy objectives.
The regime would apply to imports from all third countries, including countries with tariff preferences or free trade agreements, unless bilateral safeguard measures are applied instead. Products originating in Norway, Iceland and Liechtenstein are excluded.
The compromise text maintains the melt-and-pour requirement. Importers of covered products must provide verifiable evidence, such as a mill test certificate, proving the country where the relevant raw steel or iron was first produced in liquid form and subsequently cast into its first solid state. The Commission must adopt implementing rules on the type of evidence required by 31 August 2026.
Within two years of entry into force, the Commission must assess whether it is necessary to designate the country of melt and pour as the basis for benefiting from the tariff quotas provided for in the regulation. Based on that assessment, it may submit a legislative proposal.
Quota administration will remain quarterly. From 1 July 2026 to 30 June 2027, unused quarterly quota volumes will be carried over to the next quarter. From 1 July 2027, the Commission will review the carry-over, taking into account import pressure, average quota use and insufficient availability of supply for downstream steel users.
The first European Parliament reading of the new bill is expected on 18 May. If Parliament adopts the text as detailed by the Council, the latter would approve the Parliament’s position and the act would pass into law.
Author: Elina Virchenko
