European Parliament approves steel trade regime interinstitutional negotiations
The European Parliament plenary has confirmed the International Trade Committee (INTA)’s decision to enter into interinstitutional negotiations on the proposed new steel trade regime.
The Parliament, Council and Commission have now been authorised to negotiate the final wording of the document, before it goes back to Parliament for a reading. Time is of the essence, as once this is completed, the Commission will still need to negotiate access to the EU steel market with free trade agreement partners, before the new measure is due to come into force from 1 July, Kallanish notes.
INTA voted last month to approve the proposed new steel trade regime with amendments.
The committee has since released a document summarising its position. It says the proposed measure needs regular evaluation to ensure production increases at highly competitive companies and it “goes hand in hand with efforts to ringfence export markets and cooperation in fighting global overcapacity together with likeminded trading partners”. Annual reporting would be in line with this type of trade instrument, it adds.
The importance of the melt and pour rule was also stressed, to ensure product traceability and prevent circumvention. It is proposed that importers provide “verifiable” evidence at the moment of importation. This includes a mill certificate issued by the original steel producer, identifying the corresponding heat number and containing the technical and production data necessary to trace the origin of steel.
Steel imports from Russia and Belarus are banned. Slab imports from Russia, currently exempted and receiving a quota, are to be reviewed.
“For products currently subject to derogation under Article 3g(1), point (d), of Council Regulation (EU) No 833/2014 until 1 October 2028, a significant price gap has been materialised since the Russian invasion in 2022 between products originating from Russia vis-à-vis other third countries, and such products originating from Russia have increased their market shares in relation to other third countries, especially in relation to Ukraine,” the document states.
“Those import flows also provide the Russian Federation with significant revenues, thereby directly contributing to its ability to sustain its war of aggression, while simultaneously maintaining strategic dependencies. The Commission should deliver an assessment of Union industry’s substantially unutilised capacity to supply such products”, with a view to phasing out slab imports from Russia.
