A group of 106 MEPs has urged European Commission President Ursula von der Leyen to implement the steel safeguard replacement measure from 1 January 2026, aiming for 85% EU capacity utilisation and import shares of 2012-2013 levels.
In a letter dated 11 September to von der Leyen, Executive Vice-President for Prosperity and Industrial Strategy Stéphane Séjourné and Commissioner for Trade and Economic Security Maroš Šefčovič, the MEPs pointed to July’s French government-led non-paper. Backed by 11 EU member states, this set out a comprehensive vision for the design of the new trade defence instrument.
The MEPs, including Committee on Industry, Research and Energy coordinators Christian Ehler, Dan Nica and Christophe Grudler, emphasise the framework must also apply a meaningful tariff on imports out of quota, to effectively limit the imports to the targeted market shares. “It must provide for a comprehensive coverage of all relevant products and countries, including steel derivatives where appropriate. Lastly, the Commission should assess the effectiveness of a ‘melted and poured’ rule of origin to address the issue of circumvention,” the letter reads.
“In addition to providing the highly effective protection to the European steel industry that is so urgently needed, the new framework must comply with the Union’s international obligations, notably by being WTO-compatible,” the MEPs write.
“Lastly, we urge you to also consider the competitiveness of steel-using sectors. Next to a strong and highly effective trade safeguard for steel, measures to boost the competitiveness of steel-using sectors should also be adopted. The European Union cannot afford to lose competitiveness of one industry at the expense of another’s, but must act from a holistic approach,” they add.
The next few months are shaping up to be extremely busy for the European Commission. Besides the safeguard replacement, the Commission is expected to publish crucial CBAM benchmarks in the fourth quarter, accompanied by a legislative proposal extending CBAM to downstream products and introducing additional anti-circumvention measures. A measure to support EU steelmakers’ export competitiveness has also been promised.
Adam Smith Austria
