The European Parliament has announced that it has adopted a position on a new regulatory framework aimed at protecting the European steel market from the negative effects of global overcapacity, as the current safeguard measures are set to expire on June 30, 2026. The members of the Parliament’s International Trade Committee voted overwhelmingly in favor of the European Commission’s proposed steel trade regulation, signaling strong parliamentary support for tougher trade defense measures.
Under the approved text:
- Tariff-free import quotas would be limited to 18.3 million mt per year, a 47 percent reduction compared with the 2024 quota system.
- A 50 percent customs duty would apply to steel imports that exceed the quota and on products not covered by it.
- These measures are intended to reduce the impact of subsidized and underpriced steel arriving from global markets that has suppressed EU production capacity and profitability.
Strengthening traceability and WTO compliance
The draft regulation also aims to improve traceability of imported steel by clarifying the type of origin evidence importers must provide to demonstrate where steel was melted and poured, a key step to prevent circumvention and ensure compliance with World Trade Organization (WTO) rules.
Ban on imports from Russia and Belarus
As part of the broader trade defense package, the draft legislation also includes a ban on all steel imports from Russia and Belarus, extending existing restrictions on products from these markets.
Next steps toward final adoption
Following the committee vote, the European Parliament will begin interinstitutional negotiations with the Council of the EU with the aim of reaching a final agreement in the spring of 2026. If finalized, the new regulation will replace the current safeguard measure and extend meaningful protection for the EU’s steel industry beyond June 2026.
