The European Parliament plenary voted on Tuesday overwhelmingly in favour of the proposed steel trade regulation intended to replace the safeguard measure.
The new regulation must now be formally approved by the Council before entering into force on 1 July, a Parliament note states. The Council previously specified the act would pass into law if Parliament adopts the text as detailed by the Council following its provisional agreement on the regulation with Parliament in April, Kallanish notes. This suggests the approval is just a formality.
Country quota allocations remain unconfirmed, as the European Commission is still in talks with trading partners to ensure the measure’s WTO compatibility.
The Commission must take into account the import market share that prevailed in the Union steel market in 2013 – prior to the impact of global overcapacity. It should also take into account current and future free trade agreements. Ukraine’s situation as a candidate country with special security concerns will also be considered.
The total annual quota volume is set at 18,345,922 tonnes, with a 50% out-of-quota duty. The melt-and-pour requirement will be implemented, with the Commission needing to adopt implementing rules on the type of evidence required by 31 August. From 1 July 2026 to 30 June 2027, unused quarterly quota volumes will be carried over to the next quarter, after which a review will take place.
From 1 October 2027, the Commission will need to take into account the information gathered from importers on the country of melt and pour when specifying the country distribution of tariff quotas.
The regulation was approved by 606 votes in favour and 16 against, with 39 abstentions.
Steelmakers association Eurofer welcomed the Parliament approval. “At a time of growing geopolitical uncertainty and market distortions, this sends an important signal that the EU is prepared to act to defend its industrial base, security and autonomy. There must now be no delay in ensuring the measure enters into force by 1 July 2026, when the current safeguard expires,” says its director general, Axel Eggert.
The association reiterated its call for the measure to be extended to downstream steel-containing goods in order to strengthen the wider European industrial value chain.
