EU Tightens Steel Import Restrictions

The European Commission has unveiled a new system of steel import quotas aimed at protecting the European steel industry from global overcapacity and increasing capacity utilization to 80%.

Under the new rules, annual duty-free import quotas will be cut by 47% to 18.3 million metric tons. Steel imports exceeding those limits will face a 50% tariff across 26 product categories.

Half of the quotas will be reserved for countries that have free trade agreements with the EU. The remaining half will be available to all trading partners, including those countries. Several partners will also receive country-specific quotas based on their current export volumes.

The Commission said most free trade partners will face a smaller reduction in market access than the average 47% cut. It also noted that many partners have provisionally accepted the proposed quota allocation.

Brussels said the measures are intended to restore fair competition in a market distorted by excess production capacity and dumping.

(reuters, bak)