EU safeguard measures submitted for approval
The new safeguard measures on steel imports to the EU, have been submitted for approval. As previously reported on SteelOrbis on September 3, 2002 the 7 categories proposed for safeguard measures are as follows:- HRC (product group number 1); - HR sheet and plate (product group number 2); - HR narrow strips (product group number 3); - Alloyed HR flat products(product group number 4); - Cold rolled steel sheet in coils (product group number 5); - Flanges (product group number 18); - Fittings (product group number 19)A global tariff rate quota system to be valid for three years is proposed for non-alloyed hot rolled steel in coils. Quota for the first year is 3.1 million mt, then to be increased to 3.2 million and 3.4 million mt in second and third years respectively. The tariff rate to be implemented after the quota is completely utilized is expected to be 17.5% for the first year and then to be reduced to 14.1% for the third year. There will be country specific quotas for other categories listed above. Also tariff rates to be implemented for imports over quota limits. In case the EU Commission approves the system on Sept 28th, and drops the other 14 categories originally included, from the safeguard measures list, the EU producers are likely to push for antidumping action, possibly by the end of this year. Market sources talk about rebar and quarto plate imports will be the highly likely first targets. As for exporting countries, Turkey and Latvia are expected to be named before the others under a potential rebar antidumping case, and Indonesia and Romania to lead the pack under a potential quarto plate case.