The European Union has announced provisional safeguard measures against steel imports to protect its domestic market from possible trade diversions because of the Section 232 tariffs in the US. The provisional safeguard measures will apply in the form of 25 percent duty if the import quotas determined for 23 products are exceeded. Regarding Turkey, exports of 14 steel products are subject to safeguard measures.
According to Turkish Steel Exporters’ Association (CIB), in terms of these 14 products, Turkey exported 3.7 million mt to the EU during the first six months of the current year.
“Although Turkey is subject to the safeguard measures, exports to the EU will continue. The EU started the investigation on the basis that the Section 232 tariffs will pose a threat to the EU domestic market. Contrary to the US, the EU does not wish a total halt of steel imports. Therefore, they imposed a tariff rate quota. The import quotas are determined for the products globally. However, we hope that Turkey will continue its exports without being negatively affected by these quotas,” said CIB chairman Adnan Aslan.
Aslan pointed out that the EU needs imported steel, adding that the trade figures between Turkey and the EU are in favor of the latter. He went on to say that Turkey’s steel imports from the EU in 2017 amounted to $4.3 billion, exceeding Turkey’s steel exports to the EU in the same period. “I do not believe the EU is happy with imposing safeguard measures but they were forced to take measures when the global trade balance was disturbed because of the Section 232 tariffs in the US. If the Section 232 measures are removed, I believe the EU will remove the safeguard measures as well,” Aslan concluded.