UPDATE: EU strikes deal on stricter steel import curbs

New measures under the agreement aim to counter the negative effects of the global steel surplus once the current EU steel safeguards that include a 25% tariff on steel imports above a set quota expire on June 30 this year, per the announcement.

The deal introduces a revised tariff-rate quota system that cuts the overall tariff-free steel import quota by some 47% from the 2024 level to 18.3 million tonnes a year, doubles the tariff to 50% on the out-of-quota imports, and strengthens the traceability of steel origins.

Under the compromise reached by the co-legislators, the system sets up a "melt and pour" principle, which identifies the country where the steel was first produced in liquid form. The principle will be used as one of the factors when allocating quotas to third countries.

The provisional agreement will be submitted to the European Union states' representatives in the Council and the Parliament for final endorsement, and once formally adopted by both institutions, the regulation will come into force on July 1 2026, according to the latest announcement.

To provide flexibility for economic operators and support supply chains, during the first year of the system application, unused import quotas may be carried over from one quarter to the next for all product categories, and from the second year onwards the commission will determine whether such carry-over should be allowed for specific products, the announcement clarified.

The agreement "provides the EU with a stronger and more effective instrument to address global overcapacity while maintaining a rules-based approach and ensuring fair competition and long-term resilience for Europe's steel producers and value chains," said a minister from the EU member state, the Republic of Cyprus.

Written by Anthea Shi, shihui@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com