After two sessions of interinstitutional negotiations (trilogues) without any decisive progress (see EUROPE 13831/25), the European Parliament and the Council of the EU finally reached a political agreement aimed at protecting the European market from global steel overcapacity on Monday 13 April.
As the safeguard measures taken in 2018 expire on 30 June (see EUROPE 13831/25), the Regulation aims to limit imports on a permanent basis in order to protect the European steel industry.
In detail, the provisional agreement reduces the total volume of steel import quotas by around 47% compared to 2024, or 18.3 million tonnes per year. Above this volume, over-quota duties of 50% will apply (compared with 25% at present), as initially proposed by the European Commission (see EUROPE 13725/1). These measures are designed to discourage excessive imports from third countries, while guaranteeing them controlled access to the European market.
“For the first time, this is a fully-fledged industrial policy measure, not an anti-dumping measure. This changes the situation and opens up new outlets for European production”, Karl Tachelet, Deputy Director General of the European Steel Association (EUROFER), told Agence Europe.
Deferral of export quotas approved. One of the most sensitive points concerned the possibility for exporting countries to carry-over unused quotas from one quarter to the next. Parliament feared that certain countries would exploit this mechanism to accumulate quotas and then export large quantities to the EU when the time was right.
According to our information, the Commission has proposed a compromise limiting the possibility of deferring quotas. These will now be allocated by product and by exporting country, with a targeted reduction in the volume allocated rather than a uniform reduction.
“Halving quotas is a step in the right direction”, said Majdouline Sbaï (Greens/EFA, French), shadow rapporteur for this Regulation. “But we cannot stop there in the face of competition from China, which is destroying our industries one by one. [Adding] a criterion on the decarbonisation of the sector will be essential to encourage companies to make the transition while guaranteeing them adequate protection”, she added.
Greater traceability, but no restrictions on Russian steel. The Regulation also establishes a ‘melt and pour’ traceability system, specifying the evidence that importers must provide concerning the origin of their steel. Under current rules, it is not possible to trace steel that has been processed and resold in third countries.
On this point, MEP Karin Karlsbro (Renew Europe, Swedish), the text’s rapporteur, argued for a ban on imports from Russia and Belarus, to avoid circumventing European sanctions. However, the EU Council was adamant on this point (see EUROPE 13831/25). The co-legislators simply opted for a joint declaration affirming the importance of phasing out all imports of Russian steel products quickly.
The agreement still has to receive the green light from the Parliament and the Council of the EU before it can enter into force. This agreement could be on the agenda for Parliament’s May plenary session. The Regulation should therefore come into force on 1 July, the day after the temporary safeguard measures expire. (Original version in French by Juliette Verdes)