The European Commission has closed its safeguard investigation into certain ferroalloys (see EUROPE 13549/26) and has decided to impose a tariff quota to curb low-cost imports into the EU. On Tuesday 18 November, the EU Member States gave the go-ahead for this measure, which will take effect on 19 November.
Ferroalloys are used in the manufacture of steel and play a crucial role in the construction, automotive, aerospace and defence industries.
In 2024, France, Poland and Slovakia called for an investigation, arguing that their industry was suffering from increasing pressure from foreign companies.
Imports rose by 17% between 2019 and 2024. As a result, the market share of European producers has fallen from 38% to 24%.
“The EU cannot afford to let a strategic industry collapse under the weight of rising import pressures”, said EU Commissioner for Trade Maroš Šefčovič on Tuesday 18 November.
The measure. As a result, from 19 November, imports of four categories of ferroalloys from all third countries - including those in the European Economic Area - may be subject to a minimum import price, if the following two conditions are met: - the quota for each country is exceeded; - the net import price is lower than the reference price set by the Commission.
The categories concerned are: ferromanganese, ferrosilicon, ferrosilicomanganese and ferrosilicomagnesium.
As regards the tariff quota volume, the Commission has based this on the import volumes from the last three years, reduced by 25%.
This means that the countries concerned will be able to export up to 75% of their historical volume per year to the EU without a tariff. This quota will be divided over the four quarters of the year, and the ‘first come, first served’ principle will prevail for companies.
Above this volume, if the net import price is lower than the minimum reference price, the products will be subject to a tariff that makes up the difference between the two prices.
The case of Norway and Iceland. Between them, Norway and Iceland account for 43% of EU imports of the ferro-alloys covered by the investigation. In recent years, the two countries have contributed to the increase in flows that has harmed EU industry, according to the Commission.
This is why, despite being members of the European Economic Area, the two countries are not exempt from the safeguard measure.
In recent months, Norway has taken various steps to obtain preferential treatment, but the Commission has deemed this impossible given the volumes of imports and the rules surrounding safeguard measures.
For Norwegian Finance Minister Jens Stoltenberg, this is a political issue. He reiterated his country’s opposition to the safeguard measure on Thursday 13 November at an EU/EFTA ministerial meeting.
In an effort at reassurance, a European official explained on Tuesday 18 November that Norway and Iceland would not be greatly affected by the measure, as their products are generally exported above the minimum reference price, which will prevent them from being overtaxed. (Original version in French by Léa Marchal)