The Committee on International Trade (INTA) of the European Parliament (EP) has issued a draft report that significantly alters and strengthens the European Commission’s October proposal to address global steel overcapacity, introducing tougher trade-defense measures, new origin-based bans and stricter monitoring requirements.
The new draft of rapporteur Karin Karlsbro, vice-chair of INTA, marks the Parliament’s first formal response to the Commission’s regulation published in October 2025, which sought to curb the impact of subsidized and excess steel production from third countries on the EU market. Lawmakers now aim to reinforce several elements of the original plan, citing the severity of market distortions and the need for stronger protection of European industry.
Tougher trade-defense framework than October proposal
While the Commission proposed halving tariff-free quotas and raising out-of-quota duties from 25 percent to 50 percent, Parliament’s draft supports this increase but calls for stricter enforcement across all product categories, with additional safeguards to prevent quota manipulation and circumvention. The draft also emphasizes structured monitoring of quota usage, more detailed reporting obligations and greater scrutiny of sudden import surges to prevent front-loading and circumvention, which is an element less prominent in the October proposal.
New ban on steel melted in Russia or Belarus
One of the most substantial changes introduced by Parliament is a full ban on steel melted and poured in Russia or Belarus. The Commission’s October proposal did not contain such a prohibition; instead, it relied entirely on tariff-rate quotas and higher out-of-quota duties.
Parliament’s draft introduces a much stronger measure:
- A full ban on steel “melted and poured” in Russia or Belarus, regardless of the country of final processing.
- This reflects geopolitical considerations and aims to close loopholes where Russian or Belarusian slabs are rolled or finished in third countries before entering the EU market.
- Ukraine-origin steel remains exempt.
Reinforced melt-and-pour origin requirements
The Commission’s proposal introduced a melt-and-pour origin rule for quota allocation, but the Parliament draft expands and sharpens this element. The new text requires more detailed documentary evidence, stronger verification obligations for customs authorities, and mechanisms to detect and penalize origin mis-declaration.
Monitoring and review mechanism
The European Commission plans to monitor the application but has no specific review cycles in legislation, while the European Parliament introduces a mandatory biennial review (every two years) of global overcapacity, import trends, tariff effectiveness, and impact on EU steel capacity and jobs.
