Report proposes ‘pragmatic’ changes to EU steel trade defence plan

A draft report on the European Commission’s proposed replacement for its steel import safeguard measures has recommended a series of amendments. 

The report, published by the European Parliament’s Committee on International Trade (INTA), says that the Commission should reconsider its plan to end the rollover of unused tariff-rate quota volumes at the end of each quarter. It also suggests that the Commission’s proposed “melt and pour” requirements on steel imports should accept a wider range of documentation as proof of origin. 

INTA’s report highlights a need for the EU’s replacement steel trade defences not to undermine the competitiveness of downstream industries. It said: “It cannot be a tool to keep uncompetitive industry alive while pushing the problem further down the supply chain.” 

Cutting red tape for legitimate importers 

MEPS steel market analyst Jonathan Carruthers-Green said: “The Commission’s original proposal would severely restrict imports by sharply reducing quota volumes and doubling above-quota tariffs from 25% to 50%. The Parliament’s draft response points to a more pragmatic safeguard regime. Allowing quota carry-over and easing its strict requirements on ‘melt and pour’ documentation will reduce the risk of artificial supply constraints while cutting red tape for legitimate importers. The draft also gives greater attention to the effect on downstream industries, addressing one of the most contentious areas in the current safeguard system.”

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Last month, MEPS shared insight into the European Commission’s draft proposals for a new trade defence mechanism to replace its current steel import safeguard measures. The proposed measures, which will replace existing measures that are due to expire at the end of June, 2026, were also discussed in a special episode of MEPS’s Speaking of Steel podcast. 

The Commission’s proposed “melt and pour” requirement for steel imports stipulated that mill certificates would be required as proof of origin. Although INTA’s report stressed the need for such regulation, to avoid circumvention of the EU’s trade defences, its proposed amendments would allow a range of documents to be accepted as proof of origin. These include: delivery notes; quality certificates; long-term declarations from suppliers; cost accounting and production documents; customs documents from the exporting country; commercial correspondence; production descriptions; or declarations made by the manufacturer. 

Proposed ban on steel imports from Belarus and Russia 

Also among the recommendations of INTA’s draft report is a proposal that all steel imports from Belarus and Russia should be banned as part of the bloc’s new steel trade defence measures. 

Moreover, it states that Ukraine should be excluded from the quota/tariff measures "as long as that country is facing an exceptional and immediate security situation". The Commission’s draft proposals refer to “any country” affected by such challenges, but do not explicitly mention Ukraine. 

A series of recommendations in INTA’s report also call for more regular transparent reviews of the Commission’s proposed steel trade defence measures. The period of review for the measures’ continued relevance should be reduced from five years to two years, it said. Reviews of the products covered by the measures should be conducted annually, rather than every two years. 

INTA’s report was compiled after receiving input from thyssenkrupp, Eurofer, Jernkontoret, the European Steel Processors Association and Metal Packaging Europe External Affairs ASBL, alongside diplomatic bodies in Finland, Sweden and Switzerland. 

Its proposals will be the subject of a vote by the European Parliament’s Committee on Industry, Research and Energy, in mid-January. This will be followed by a parliamentary vote.