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| European Commission |
Strengthening Trade Defense Measures
The European Commission (EC) plans to implement a rule of origin for steel products as part of its Steel and Metals Action Plan. Under this proposal, the origin of steel will be determined by where it was originally melted and poured, regardless of further processing. This change aims to prevent circumvention of anti-dumping duties by processing steel in third countries before exporting it to the EU.
Impact on Steel Imports and Trade Policies
This regulation could significantly affect imports of cold-rolled and hot-dip galvanized steel into the European market. Analysts suggest that the rule will mainly impact steel originating from China, which is currently exported to the EU after minimal processing in countries like Vietnam. However, challenges remain regarding verification and enforcement of the new rule.
The EC is also considering proactively opening trade investigations in cases where there is a "threat of damage" to the EU market, without waiting for actual harm to occur. Additionally, the Commission will propose a new system of tariff quotas by the third quarter of 2024, set to expire on July 1, 2026.
Scrap Export Restrictions and Clean Industry Agreement
The EC is exploring restrictions on scrap metal exports, including a potential export duty of up to 25%, to secure raw materials for European industries. This aligns with the recently announced Clean Industry Agreement, which seeks to enhance the competitiveness of EU manufacturing by reducing bureaucratic barriers and promoting decarbonization as an industrial growth driver.
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STEEL
