New EU measures to address global steel overcapacity

The European Parliament and Council have agreed on the measure to protect the EU steelmaking sector against global overcapacity.

According to their communications the new measure sets tariff-free quotas at 18.3 million tons per year, with an out-of-quota duty set at 50 percent for 30 categories of steel products imported into the EU. It also introduces a 'melt & pour' requirement to improve traceability and transparency of the EU steel supply chain. The measure will apply to imported products from all countries, except for EEA countries - the latter will still be subject to ‘melt & pour' requirements.

The new measure will replace the existing EU steel safeguard, which has since 2018 imposed a tariff rate quota system on 28 product categories, permitting duty-free imports up to a limit before a 50 percent tariff applies. These measures will expire on 1 July 2026. The new measure is intended to replace them.

Next steps

Even though the European Parliament and the Council have agreed on a text, both have to formally adopt the text before it can enter into force.