EU Proposes Expanded Steel Safeguard
The European Commission announced a new proposal Oct. 6 to shrink the size of its tariff-rate quota for steel to 18.3 million tons a year and double the tariff rate for out-of-quota steel to 50%. The proposal would decrease the quota by 47% from 2024 and double the current 25% tariff rate applicable to out-of-quota steel.
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In addition, the proposal would boost the "traceability of steel market" by rolling out a "Melt and Pour requirement to prevent circumvention," the commission said. Under this rule, importers would be tasked with identifying the country "in which raw steel and iron is initially produced in liquid form within a steelmaking or iron making furnace and subsequently cast into its first solid state." The importers would submit proof, including mill test certificates, to confirm the country of melt and pour.
The EU said the measures will replace the existing steel safeguards, which are set to expire by June 2026, and are "fully" compliant with the World Trade Organization. The commission said it will "swiftly engage with affected EU trading partners" with regard to "this change to the EU's WTO tariffs, with a view to offering them country specific allocations."
The proposal now will be subject to approval and modification by the European Parliament and Council of the European Union.