The proposed changes to tariff rate quotas following the review by the Trade Remedies Authority (TRA) “fall short” of what is required, says industry association UK Steel.
The TRA has recommended that country-specific caps be imposed on certain steel product categories (see separate story).
The association says the amendments “go some way to address the fears raised” but fall short of what is required given the scale of the challenge the UK industry is faced with.
It adds that this increases the urgency for the UK government to develop and implement a robust trade defence mechanism to replace steel safeguards which expire in June 2026. It cites that global excess capacity remains the most critical trade issue, at a time when steel demand continues to weaken.
Global overcapacity forecasts have risen to a potential 721 million tonnes in 2027, it notes.
“The outcome of the TRA’s safeguard quota review does little to effectively defend the UK steel industry from the vast amounts of surplus steel looking to be offloaded onto our shores,” UK Steel director general Gareth Stace says in a statement seen by Kallanish.
“The TRA went as far as it could go within the confines of the unnecessarily restrictive UK regulation. Time and time again we find ourselves hamstrung because UK rules are more restrictive than both the EU’s and what is required by the WTO.”
Stace adds that the UK is increasingly an outlier in adhering to outdated trade rules that are at the expense of the national interest.
“It is now time for Government to step up and swiftly replace ineffective steel safeguards with a robust trade defence mechanism of quotas designed to suit the reality of the market and the world today. There is no need to wait until June 2026. Strong defence must be a core component of the upcoming Steel Strategy to ensure the market stability and certainty that are essential for investment,” he concludes.
Carrie Bone UK
