In a critical step to protect the European steel industry, France’s industry minister Marc Ferracci has proposed a comprehensive new trade measure aimed at addressing the growing risks of global steel overcapacity. With the current EU safeguard framework expiring in June 2026, this new initiative seeks to ensure the industry’s long-term competitiveness and capacity utilization.
The non-paper, supported by 11 key EU Member States - including Austria, Belgium, Bulgaria, Greece, Italy, Luxembourg, Poland, Romania, Slovakia, and Spain - outlines a roadmap for replacing the current safeguard regime with a more effective, inclusive system starting January 1, 2026.
According to Mr. Ferracci, global steel overproduction continues to distort European markets, threatening local producers by suppressing prices and saturating demand. The current safeguard system, which imposes duties on imports exceeding tariff-free quotas, is due to expire, leaving the industry vulnerable.
Key proposals in the new framework
Import quotas would remain duty-free up to a fixed volume, maintaining trade flows while shielding local capacity; once quotas are exceeded, customs duties would apply without exception, similar to current measures; the plan would prevent quota monopolization by any specific country, promoting fairer trade distribution; and the new system would extend to steel and iron products not currently covered, ensuring comprehensive protection. Proposed product categories for inclusion are tubes and hollow profiles, grain-oriented electrical steel sheets, granules of pig iron or steel, stainless steel drawn wires, grinding balls, bearing tubes, forged bars, and alloy wires.
Timeline and urgency
The proposal urges the European Commission to develop and present the new framework well before the current safeguard’s expiration in June 2026. The preferred launch date is January 1, 2026, allowing for seamless transition and uninterrupted market protection.
Commenting on the proposal, Axel Eggert, director general of the European Steel Association (EUROFER), said, “We call upon other Member States, the European Parliament and the Commission to fully support this initiative. This is exactly the kind of coordinated action we need to stop the tsunami of cheap steel imports from destroying Europe’s industrial base, jobs, and green transition. Urgency and political determination are now more critical than ever: every day lost is a step further away from European industrial sovereignty.”