EU announces definitive safeguard measures on steel imports

Friday, 01 February 2019 15:52:49 (GMT+3)   |   Istanbul
       

The European Commission (EC) has announced final measures on steel imports. Accordingly, a tariff-rate quota will be applicable for the period February 2, 2019 to June 30, 2019, thereafter, for the period of July 1, 2019 to June 30, 2020, and, thereafter, for the period July 1, 2020 to June 30, 2021.

The EC said that, since the duration of the measures is for over a year, the measures must be progressively liberalized at regular intervals during the period of application. The EC considers that the most appropriate way to liberalize the measures is to increase the volume of the free-of-duty quota by five percent after the each year. The first liberalization will take place on July 1, 2019, with the second liberalization taking place on July 1, 2020. Subsequent liberalizations will follow the same pattern.

Meanwhile, where the relevant tariff-rate quota is exhausted, an additional duty at the rate of 25 percent will be applicable on steel imports into the EU.

Commenting on the liberalization of the quota at regular intervals, “This ‘relaxation’ of the measures is completely out of step with the evolution of the steel market, which is expected to be flat in 2019. 2016 and 2017 were joint record years, meaning the quota was already set at the maximum level reached in a global market suffering massive overcapacity and distortions in foreign producer countries,” stated Axel Eggert, director general of the European Steel Association (EUROFER).

EUROFER urges the Commission to take into account actual market conditions at the time of the first revision of the final safeguard measures, in July 2019.

Details of the quotas can be seen here.


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