Brussels – The European Union (EU) is implementing measures to safeguard European steelmakers, including those in Slovakia. This announcement was made on Tuesday by Trade Commissioner Maroš Šefčovič, as reported by TASR.
Maroš Šefčovič highlighted before unveiling this strategy at the European Parliament in Strasbourg that the European Commission (EC) is proposing protective measures for the steel market due to an unsustainable situation that threatens the EU’s economic security.
“We have implemented crucial measures. Import quotas for steel entering the EU will be reduced by 47 percent to protect European steel manufacturing facilities. This aims to prevent job losses and ensure a sustainable future for the steel industry, which is essential for engineering and other sectors,” he explained.
The reduced quotas combined with increased tariffs are designed to protect European steelmakers.
He noted that quotas would be cut by 47%, and any steel imports exceeding these quotas would incur a 50% tariff. He expressed optimism that this strategy would enhance the competitiveness of the European steel sector.
The rationale behind these measures lies in the substantial steel overcapacity in third countries, which are flooding the European market. Šefčovič observed that other major economies like the USA and Canada are restricting their markets to excessive steel production.
Next phase of discussions with the USA regarding steel
“We believe these measures will allow us to advance to the next phase of negotiations with the USA, addressing the export of specialized steel and strengthening arguments for removing tariffs on steel-containing products exported to the USA. This would significantly lower customs costs for European exporters,” he stated.
Šefčovič believes the EC’s new measures will also support Slovak producers facing challenges due to the influx of overcapacity steel from third countries in Europe. “This also opens up avenues for exporting steel products to the USA. We aim to collaborate with our American partners on a solution to this overproduction issue. For Slovakia, this news is positive as it means job retention in the steel industry and the potential for a new operational model for steelworks, ensuring job security for workers in steel-producing regions,” he elaborated.
The current American tariffs on steel and aluminum imported from the EU stand at 50%. Šefčovič emphasized his ongoing communication with American officials, having recently sent a letter to Washington outlining the EU’s planned actions and specific items, particularly steel derivatives, where the EU seeks to lower tariffs or set them at a 15% threshold.
He mentioned that adopting measures similar to those the USA has taken against excessive steel capacity was one of the American side’s conditions for jointly establishing a protective barrier against overcapacity steel from third countries. Both parties concur that American and European steelmakers are not competitors but have complementary production capabilities. (October 7)
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