European Commission Ponders On Steel Import Quotas Extension
The European Commission may extend steel import quotas, which expire in July 2021. This is according to documents published on the website of the European body.
The 12 EU member states are calling on the European Commission to extend duties on EU steel imports from July. The reason is the continuing pressure due to steel imports by third countries into the region, which is hurting European steelmakers.
Global steelmaking capacity remains high, while countries continue to impose safeguard measures to limit steel imports. Meanwhile, there is no evidence of the removal of import duties on steel in the US, 12 EU member states explained their position.
As a result, the European Commission intends to investigate to make a final decision on the extension of import quotas from July.
In January, 12 EU member states, where most of the alliance’s steelmaking capacity is concentrated, appealed to the European Commission to review EU steel import quotas. The slowdown of economic growth in the EU is negatively affecting the steel industry.
Since July 2020, the EU has a new mechanism for applying steel import quotas. All individual quotas are allocated on a quarterly rather than annual basis.