The EU has announced stricter controls on steel imports, reducing duty-free quotas by 47% and increasing import tariffs to 50% for quantities exceeding the quota, effective July 1, 69, to counter the influx of Chinese steel into the market.
June 30, 2569 at 15.51:XNUMX a.m. Bloomberg News reported that The European Union (EU) has announced new measures to protect the region's steel industry from the influx of low-priced steel, particularly from China. This involves reducing the duty-free steel import quota by almost half and increasing import tariffs if the quota is fully utilized.
The measures will come into effect on Wednesday (July 1), with the EU allocating a total of 18.3 million tons of duty-free steel import quotas, split in half: 9.15 million tons for countries with free trade agreements (FTAs) with the EU, and another 9.15 million tons for other countries, including FTA partners.
EU officials specify that Under the new measures, countries with FTAs will be able to export approximately 33% less duty-free steel to the EU compared to before, while overall import quotas will decrease by as much as 47%.
If steel imports exceed the specified quota, a 50% import tax will be levied, which is double the previous rate of 25% that has been in place since 2561.
European Commission specify that This measure is aimed at addressing imports.Steel prices are below market rates, subsidized by the government and largely sourced from China, putting pressure on European steel producers.
The new quotas are based on each country's market share during 2565-2567, taking into account the diversity of supply sources to support Europe's downstream industries, even though negotiations with trading partners have been difficult.
EU officials specify that Although Europe is facing oversupply problems in other industries, such as chemicals, there are currently no plans to implement similar measures in other sectors.
The EU confirms that the measures are consistent with World Trade Organization (WTO) rules.
The United States, which does not have a free trade agreement with the EU, is not expected to retaliate as it is facing a similar problem of steel surplus from China. The United Kingdom has also implemented similar measures.
To date, the EU has reached an agreement in principle on steel import quotas with 11 countries, representing approximately 70% of the EU's total steel trade. These countries are Brazil, India, Indonesia, South Korea, Switzerland, Turkey, the United Kingdom, and Ukraine. These countries have accepted the trade compensation measures proposed by the EU and will not resort to retaliatory measures.
For Ukraine, the EU will allow duty-free imports of 70% of its normal steel export volume to help mitigate the effects of the ongoing war with Russia.
refer : www.bloomberg.com
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