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The European technology association Orgalim has demanded an end to the EU Safeguard measures in a letter to the European Commission on April 12, 2021, which we were able to view. These would endanger the future of the European economy and more than 11.5 million jobs in the manufacturing sector. And stand on no more to justify basis.

Orgalim calls for end to EU Safeguard measures
Orgalim calls for end to EU Safeguard measures

No redirection to Europe: US steel tariffs have no significant effect

In its letter, Orgalim doubts that the U.S. steel tariffs against third countries such as China will have a significant diverting effect on steel trade from China and other third countries to the EU.

Import quotas totally inadequate

In addition, the import quotas currently provided for in the safeguard measures are insufficient, according to Orgalim, and some of them have already been exhausted.
In addition, there is a need to import certain steel products that are not produced in sufficient quantities in Europe by the European steel industry.

European steel producers unable to meet demand

Furthermore, Orgalim argues that the steel safeguard measures that have been in place for three years and three months have not resulted in steel production capacity in the EU being raised to the level required by the European industry.

Serious reasons to abolish steel safeguards

Therefore, following the review of the steel safeguards, Orgalim calls for the safeguards to be abolished.

Such abolition of steel quotas is crucial for the competitiveness of European technology industries. Prices for European steel products increased significantly in the second half of 2020 and continued to increase significantly in the first quarter of 2021.

This reflects reduced competition in the European steel sector, making it more difficult for downstream users to negotiate their contract prices.

Extension of Safeguard challenges retaliatory measures

Moreover, according to Orgalim, steel safeguards are exceptional measures under WTO rules. If the steel safeguards were extended after July 2021, Europe would face retaliatory measures from third countries that would restrict trade. Finally, the possible future Carbon Border Adjustment Mechanism (CBAM) could also potentially increase steel costs for our industries, Orgalim continues.

End-user industries must be taken into account by EU

Orgalim has therefore again called on the European Commission to take into account the interests of downstream steel users when deciding on steel safeguard measures. The Union interest analysis should take into account the economic impact on our end-user industries.

Competitiveness and more than 11.5 million jobs at risk

The competitiveness of Europe’s technology industries – which account for one-third of Europe’s manufacturing sector with more than 11.5 million direct jobs – must be preserved, especially in the context of recovery from the COVID-19 crisis.

Source: orgalim.eu

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