The European Commission is likely to launch a review of its tariff quota steel safeguard measures in the coming weeks.
EU steel mills wants safeguard measures extended
Member states representing the bulk of EU steel production – along with the Netherlands and Sweden – have requested the review with a view to extending the safeguard measures, as has the European steel association Eurofer. The measures will expire at the end of June.
Review does not automatically mean extension
The review does not mean the safeguards will be extended; they could still expire, be extended or modified for certain products.
Steelmakers feel threatened
Steel producers said that nothing has changed since the measures were imposed because the Section 232 duties are still in effect in the United States. If the quotas were lifted, material would be diverted to Europe, they said.
Read also:
- EU Safeguard Measures: Calls for immediate end grow louder
- End for EU Safeguard: Assofermet calls on EU Commission to end market protection measures
- Automobile manufacturers’ association Anfia calls for end to EU Safeguard measures
- Eurometal calls on EU to “take care of steel consumers”
EU measures would have to expire in June 2021, according to WTO guidelines
However, some expect the measures will not be extended. As the commission looks for methods more compatible with the World Trade Organization (WTO) to maintain traditional import flows.
Downstream purchasers point to mills’ massive profit margins
Purchasers point to the mills’ massive profit margins and limited import supply – Turkey is now subject to provisional dumping duties and Russia’s Severstal has reviewed its tariff. Considering the difficulties purchasers have had this year in obtaining the material they need, they said extending the safeguard measures would be unfair.
Source: argusmedia.com
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