The UK is to further tighten its steel safeguards beyond those recommended by the Trade Remedies Authority (TRA) following a recent decision by Secretary of State, Jonathan Reynolds, Kallanish learns.
It is understood that in a letter to TRA chair Nick Baird, Reynolds noted that in his intended decision, the government is to limit the liberalisation of the existing steel import quotas to 0.1%.
The recommendations were released back in May.
There will also be a cap implemented on residual quotas which will prevent individual countries from dominating the quota. This includes a 15% cap in the residual quota of category 4 (metallic coated sheet) and a 20% cap in the residual quotas of categories 7 (non-alloy and other alloy quarto plates) and 13 (rebar), effective from 1 July.
Additionally, unused quarterly quotas will no longer be made available in the following quarter.
Industry association UK Steel previously made these recommendations after it applied for a review.
UK Steel says the move will be crucial to diminishing the injury that will be caused to domestic steelmakers by steel being redirected away from the US market in light of President Trump’s steel import tariffs.
UK Steel director general Gareth Stace notes: “We now need to back the tightened safeguards up with a comprehensive new trade defence mechanism. This will help to develop the positive business environment our country craves and encourage private investors to enter the sector, ensuring we not only survive but thrive. The new mechanism, to replace the safeguards before they expire, should be introduced in January.”
The association adds that the forthcoming Trade Strategy has the potential to deliver new legislation that will equip government with the tools it needs to defend companies from the subsidised steel that is currently flooding steel markets at unsustainable price levels.
Carrie Bone UK
