EU reviewing steel imports in view of possible glut
2020-04-24 08:04:02 [Print]
The COVID-19 crisis could lead to massive stockpiling of steel that could then flood the European Union when demand returns, the EU trade chief said on Tuesday, adding this was something the bloc would seek to guard against.
The EU put in place safeguards in 2018 to control incoming steel to protect European manufacturers after Washington's imposition of 25% steel tariffs closed the U.S. market to many exporters.
Quotas for 26 grades of steel, including stainless, were set at the average of imports in 2015-2017 plus 5%, with a 3% hike last year. Imports beyond the quotas are subject to a 25% duty.
EU Trade Commissioner Phil Hogan said on Tuesday that the adjustment for this year would take place by July 1 as planned. Initially, the Commission had envisaged a further 5% increase in the quotas, albeit subject to a review.
Lots of lawmakers and EU countries had expressed concerns about possible stockpiling of steel, particularly by China, and what would happen to these stocks when the restrictions were eased, Hogan said. "We are looking at the review of the steel safeguards in this context," he told members of the European Parliament in a video session.
The EU put in place safeguards in 2018 to control incoming steel to protect European manufacturers after Washington's imposition of 25% steel tariffs closed the U.S. market to many exporters.
Quotas for 26 grades of steel, including stainless, were set at the average of imports in 2015-2017 plus 5%, with a 3% hike last year. Imports beyond the quotas are subject to a 25% duty.
EU Trade Commissioner Phil Hogan said on Tuesday that the adjustment for this year would take place by July 1 as planned. Initially, the Commission had envisaged a further 5% increase in the quotas, albeit subject to a review.
Lots of lawmakers and EU countries had expressed concerns about possible stockpiling of steel, particularly by China, and what would happen to these stocks when the restrictions were eased, Hogan said. "We are looking at the review of the steel safeguards in this context," he told members of the European Parliament in a video session.
