EU Council and Parliament negotiators have reached a political agreement on new measures to counter the negative effects of the global steel surplus including lower import quotas and increased custom duties.
The industry has faced trade-related challenges, including significant and sustained import pressure in terms of volume and price, as result of global overcapacity. It has also seen about 100,000 job losses since 2008.
The global steel safeguards, in place since 2018 under the under the World Trade Organisation (WTO) Agreement on Safeguards, will expire on 30 June 2026. With the new regulation the EU steel industry looks to be better protected to deal with the challenges posed by structural global overcapacity.
The provisional deal introduces lower import quotas by limiting tariff-free import volumes to 18.3 million tonnes a year: a 47% reduction compared with 2024 steel quotas. It would also apply a 50% customs duty (instead of the current 25%) to imports above the quota and to steel goods not covered by it.
The aim is to equip the EU to counter the negative trade-related effects of global overproduction on the EU steel market once the current safeguards, in place since 2018, expire on 30 June 2026.
The draft regulation seeks to strengthen the traceability of imported steel products by clarifying the evidence to be provided by importers on the origin of their steel. Members ensured that the Commission will have to take into account the origin of steel when assigning the annual quotas.
MEPs insisted on the need for an early revision of the new regulation and to adjust its scope if necessary to ensure adequate protection of the EU steel sector. The first review by the Commission will take place in 6 months on whether an extension of the scope of products is necessary or not.
The provisional agreement will need the formal adoption by both Council and Parliament before it can enter into force. The plenary could vote on the provisional agreement in May. It needs to enter into force on 1 July 2026.
