LOC20:57
17:57 GMT
BRUSSELS, Oct 7 (KUNA) -- The European Commission announced on Tuesday a new package of trade measures aimed at protecting the European Union's steel industry from the effects of global overcapacity and unfair competition, by reducing tariff-free import quotas by 47 percent and raising out-of-quota tariffs to 50 percent.
EU Industry Commissioner Stephane Sejourne said in a joint press conference with Trade Commissioner Maros Sefcovic following the presentation of the plan to the European Parliament in Strasbourg, "Last March, we made a clear promise to save European steel, to save our industries, to save thousands of jobs along a strategic value chain. Today, we are delivering on that promise."
He added, "The European steel industry was on the verge of collapse. We are protecting it so that it can invest, decarbonise, and become competitive again," noting that European markets had faced fierce competition from subsidised companies engaging in unfair pricing practices, which resulted in the loss of around 18,000 jobs in 2024 alone.
Sejourne explained that the new measures were developed "in cooperation with industrial unions and European producers," adding that the goal was to "create time and strategic space to rebuild a green, independent, and competitive European steel industry."
Responding to concerns about possible price increases, Sejourne said that "the final impact will be limited around 50 euros per car and 1 euro per washing machine, which is a fair price for our sovereignty and European jobs."
He stressed that this policy was "not Trump style," referring to US President Donald Trump, who imposed similar 50 percent tariffs on Chinese metal imports. Sejourne confirmed that the European Union would continue to respect World Trade Organization (WTO) rules and cooperate with trade partners, while maintaining annual import quotas of 18 million tonnes of steel.
For his part, EU Trade Commissioner Maros Sefcovic said that the steel sector "is a cornerstone of Europe's economy," adding that "global overcapacity driven by non-market policies is threatening the long-term competitiveness of the European steel industry."
He explained that Europe's steel trade balance had deteriorated from a surplus of 11 million tonnes to a deficit of 10 million tonnes in just a decade, adding that EU steel production had fallen by about 65 million tonnes since 2007, and that 30,000 jobs had been lost since 2018.
Sefcovic noted that the new import regime, which will replace the existing safeguard measure after it expires in June 2026, aiming to restore balance to the European market. He pointed out that importers will be required to disclose where the imported steel was melted and poured, and that the measures will apply to all non-EEA countries.
He affirmed that these were "necessary, effective, and balanced measures designed to protect a vital sector of the European economy, support jobs, and advance the EU's strategic goals," expressing confidence that the Council and Parliament would act swiftly to turn the proposal into binding legislation.
The steel industry employs around 300,000 people across Europe, and has lost about 100,000 jobs over the past 15 years, while the current downturn puts 2.3 million indirect jobs at risk, according to data from Eurofer, the European Steel Association.
The new measure will replace the existing safeguard system, which imposes a 25-percent tariff once import quotas are exceeded, and is set to expire next year. (end)
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