The European Commission (EC) will consider extending measures to restrict steel imports as part of an overall plan to protect the sector during its decarbonization process. This was stated by the Executive Vice President of the European Commission Stefan Sejourne, Reuters reports.
During a visit to ArcelorMittal’s plant in Ghent (Belgium), Sejourne, who is responsible for EU industrial policy, said that at the beginning of his term of office, the priority will be a plan for steel and other metals. It will be aimed at reducing high energy costs and fending off Chinese overcapacity at a time when European steelmakers are cutting carbon emissions.
In 2018, the EU introduced safeguard measures to limit steel imports into the bloc to prevent steel from entering the European market after the Trump administration imposed Section 232 tariffs on steel products.
Under WTO rules, safeguard measures can be in place for a maximum of eight years, meaning they will expire in mid-2026.
Sejourne noted that the United States promises to put up trade barriers against the EU under the new Trump administration.
“Europe cannot be the only continent where overcapacity is poured out in competition against our industries,” he emphasized.
The sector needs further protection in the transition to green steel, even after the expiration of European safeguards, according to his executive vice president.
“We are looking into similar clauses that would have exactly the same impact, that are WTO compatible,” Sejourne said.
Gert Van Poelvoorde, head of ArcelorMittal’s European division, noted that there are three key issues for the sector: cheap subsidized imports, rising carbon costs with the need to reform the planned CBAM, and energy costs. He believes that the EU should decide what kind of steel industry it wants to have.
ArcelorMittal recently announced that it was postponing its planned green investments due to uncertainty over EU regulatory policy.
As GMK Center reported earlier, in June 2024, the EU officially extended its safeguard measures on steel imports for another two years, until June 2026. The decision was made following an investigation requested by 14 EU member states.
Courtesy : https://gmk.center/
