Šefčovič: EU customs measures will protect European steelmakers and also help Slovakia

Brussels – The European Union (EU) is introducing measures to protect European steelmakers, which will also help Slovak steel producers. This was stated on Tuesday by European Commissioner for Trade Maroš Šefčovič, as reported by TASR.

Maroš Šefčovič before presenting this strategy at the European Parliament in Strasbourg pointed out that the European Commission (EC) is proposing measures to protect the steel market because the situation has become unsustainable and the EU is losing its economic security.

“We have taken fundamental measures. We are reducing import quotas for steel imported into the EU by 47 percent to protect EU steel-producing factories. This is intended to prevent job losses, and at the same time, we want to ensure a future for the steel industry, which is the backbone of the manufacturing of engineering and other products,” he described the situation.

The combination of reduced quotas and higher tariffs is intended to protect European steelmakers

He specified that import quotas will be reduced by 47% and if someone wants to import steel beyond these quotas, they will face tariffs of 50%. He expressed hope that the combination of reduced quotas and the introduction of high tariffs on imports exceeding the quotas should better protect the European steel industry and strengthen its competitiveness.

The reason for the adopted measures is the fact that there has been a significant increase in steel overcapacity in third countries, which are placing their products on the European market. According to him, the EU is noticing that other large economies, such as the USA and Canada, are closing their markets to excessive steel capacity.

Next stage of negotiations with the USA on steel

“We believe that thanks to these measures, we will be able to move to the next stage of talks with the USA, as it involves similar efforts to address both the issue of exports of highly specialized steel to the USA and at the same time to have suitable arguments for the removal of customs measures against derivatives, that is, products exported from Europe to the USA that contain steel. This would significantly reduce customs expenses for European exporters,” he pointed out.

Šefčovič believes that the new measures from the EC will also be beneficial for Slovak producers, who have also found themselves in a difficult situation due to the flood of overcapacity steel from third countries in Europe. “At the same time, this opens up opportunities for exporting steel products to the USA. I believe that we will work on a joint solution to these large overproductions together with our American partners. For Slovakia, this means good news that jobs in the steel industry will not be lost, that it will be possible to create a new business model for the operation of ironworks and steelworks. It creates a new business space and also reassurance that the future of workers in regions with steelmaking is significantly protected,” he explained.

The current American tariffs on steel and aluminum from the EU are at 50%. Šefčovič pointed out that he is in constant contact with his American partners. Last week, he sent an official letter to Washington regarding the planned steps of the EU and specific items, especially steel derivatives, where the EU wants to reduce current tariffs or bring them to a 15% customs threshold.

He added that the adoption of the same measures as those introduced by the USA against excessive steel capacity was one of the conditions of the American side to jointly create a “protective barrier” against overcapacity steel production from third countries. Both sides agree that American and European steelmakers are not in mutual competition and have complementary production. (October 7)