EU steel import quotas enter into force to counter global overcapacity

A new EU regulation aimed at protecting the bloc's steel industry from global overcapacity will take effect on July 1, the European Commission said on Tuesday.

The measure introduces reduced tariff-free import quotas and a 50% out-of-quota duty on steel products exceeding the limits, following the expiration of the EU's previous safeguard regime.

"This represents a vital step towards ensuring the long-term viability of a strategically crucial European industry," the European Commission said in a statement.

Under the new system, annual tariff-free quotas are set at 18.3 million tons across 26 steel product categories.

Half of the volume is reserved for free trade agreement partners, while the rest is open to all trading partners.

The European Commission said the allocation is designed to ensure "fair and predictable" market access while maintaining supply diversity for EU users, noting that most EU steel imports come from free trade agreement partners.

The regulation also includes a traceability requirement for imported steel, aimed at improving transparency in the supply chain, including disclosure of the "melt & pour" stage of production.

The statement said discussions with trading partners at the World Trade Organization have led to provisional agreement on quota allocations for several countries.