The Trump administration 'appreciates' Brussels' efforts to tackle 'global overcapacities', says a senior EU official
The EU has announced a new tariff-free quota system aimed at drastically reducing steel imports, as Brussels continues to seek an “alliance” with Washington to protect its struggling metals sector from a flood of Chinese exports.
The measures, which will enter into force on Wednesday, will see half of a new annual European tariff-free import quota of 18.3 million tonnes distributed exclusively to partners with whom the EU has existing free trade agreements (FTAs) – a group that includes Turkey, Britain, and Ukraine.
The remaining 9.15 million tonnes will be allocated to all trading partners, including those with whom the EU has signed an FTA. This will ensure that FTA partners will “retain a significantly higher share of EU market access” than non-FTA countries such as China, the European Commission said. Countries exceeding their allotted quotas will face a 50% duty, double the current 25% levy.
The new quota allocation, which is 47% lower than the current total, provides “market participants with predictability through clear and transparent quota distribution rules, while applying a fair and objective methodology”, said Maroš Šefčovič, the EU trade commissioner.
