The Spanish steelmakers association UNESID has announced that it has welcomed the agreement between EU institutions on a new steel trade mechanism, describing it as a turning point for the future of the European steel sector.
UNESID stated that the new mechanism, which will enter into force on July 1, 2026, replacing the current safeguard measures set to expire at the end of June, ensures continuity of protection at a critical time marked by rising imports and global market imbalances.
Quotas to be reduced and tariffs increased
The revised system introduces a strengthened tariff-rate quota structure, with total quota volumes reduced by around 47 percent compared to 2024 safeguard levels, to approximately 18.3 million mt per year. At the same time, the tariff applied to imports exceeding quota limits will increase to 50 percent, reinforcing protection against import pressure.
The agreement also allows unused quotas to be carried over between quarters during the first year of implementation. UNESID noted that while this provides flexibility, its practical use is expected to be limited due to the overall reduction in quota volumes.
Call to extend protection across value chain
The association emphasized that similar protection should be extended to downstream sectors using steel, in order to safeguard demand and protect the entire steel value chain in Europe.
It also expressed hope that the mechanism could be expanded to include processed steel products.
While welcoming the agreement, UNESID stressed that further action is required to strengthen the sector’s competitiveness. This includes ensuring competitive energy costs and implementing effective climate policies to support the industry’s transition and long-term sustainability.