A qualified majority of 20 EU member states today approved a draft implementing act amending safeguard measures for steel.
The European Commission aims to formally adopt the implementing act so that it enters into force by 1 July "at the latest".
EU officials gave away few details, saying "the act modifies the current safeguard measures in a number of areas concerning the management of the tariff quotas". A draft of the measures, of which the World Trade Organisation (WTO) has been notified, outlined a shift to quarterly management of all country-specific quotas to ensure a "more stable flow of imports and minimise the risk of an undue import surge". A second adjustment aimed to minimise the risk of smaller exporting countries being crowded out by exporters enjoying country-specific quotas.
Steel industry association Eurofer had called the commission's safeguard proposal "unhelpful" as it did not take into account a 50pc demand slump since the Covid-19 pandemic took hold in mid-March. Mill sources said the move to country-by-country quotas for hot-rolled coil, and the change to residual quota usage, were requests submitted in February, so they argue that the commission did not fully take Covid-19's impact into account. The commission said the safeguard is designed to maintain fairly traded import flows, and not to help the industry cope with a demand depression.
The commission also appeared unwilling to reduce the pace of import quota growth to 1pc from 3pc.
