The Council of the European Union and the European Parliament have reached a provisional agreement on new measures aimed at protecting the EU steel industry from global overcapacity and rising import pressure.
The agreement is designed to address the impact of excess global steel capacity, expected to reach 721 million mt by 2027, which has contributed to increased exports to the EU market and intensified competition for domestic producers. The measures aim to mitigate trade distortions and ensure a more level playing field for EU steelmakers.
As SteelOrbis previously reported, the new measure sets tariff-free quotas at 18.3 million mt 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 new measure will replace the existing EU steel safeguard, which has since 2018 imposed a tariff rate quota (TRQ) system on 28 product categories, permitting duty-free imports up to a limit before a 50 percent tariff applies.
The agreement also clarifies aspects related to the management of quotas and their allocation among exporting countries. The agreement provides that, during the first year of application, unused import quotas may be carried over from one quarter to the next for all product categories, in order to provide flexibility for economic operators and support supply chains.
Next steps in legislative process
The provisional agreement will now need to be formally approved by both the Council and the European Parliament over the coming weeks, with the aim to ensure its entry into force on July 1, 2026, when the current steel safeguard measure expires.
Once adopted, the measures are expected to play a key role in stabilizing the EU steel market amid ongoing global challenges.
Welcoming the outcome of EU negotiations on a new steel trade measure, the European Steel Association (EUROFER) stated that the agreement will help protect European steel capacity, safeguard over 230,000 jobs and stabilize a sector under pressure from record import levels and global overcapacity. EUROFER emphasized that additional action will be required to ensure the long-term viability of the sector, including measures to reduce energy costs, improve the effectiveness of carbon adjustment mechanisms and address global overcapacity.
The association also called for similar protections to be extended to downstream sectors to support demand across the European steel value chain.