UK steel safeguard could lapse this month

The UK steel safeguard could lapse at the end of this month, and another safeguard could not be implemented for six years under World Trade Organisation rules.

UK business and trade minister Kemi Badenoch has not yet accepted the UK Trade Remedies Authority's (TRA) recommendation to extend the safeguard, which will lapse on 30 June. Should the recommendation not be accepted, no safeguard would be in place on 1 July and steel from anywhere in the world could be shipped to the UK market without quota.

The TRA published its final determination and recommendation on 19 April. The Department for Business and Trade refused to comment on the minister's decision before it has been taken.

The lead time to July is too short to result in a wave of imports, but the timing is inopportune — the European Commission's 15pc cap on individual countries within the other countries quota could mean that distressed material makes its way to the UK to avoid 25pc duties.

"It is absolutely essential that this deadline is met to avoid detrimental consequences to the UK steel sector," industry association UK Steel's trade and economics policy manager, Chrysa Glystra, told Argus. "As we are in the final countdown, the sector's anxiety around the decision is increasing. We see no possible justification for not accepting the TRA's recommendation and extending the measure," Glystra said.

Indian firm Tata Steel, which has production assets in the UK, said the measures lapsing would have "severe, irreversible consequences for the UK steel industry", and that it is "essential" that the minister approves the recommendation before 30 June.

By Colin Richardson