The UK has said it will introduce new rules to help protect its steel industry following the adoption of a recommendation by the newly created Trade Funds Authority to abolish some import quotas.
Commerce Secretary Liz Truss said the government only has the option of accepting or rejecting the full recommendation that quotas and tariffs should be retained for 10 steel grades over three years and canceled for nine other grades.
However, the minister said the government will now submit a public notice to begin temporary extensions for another five of the 19 steel products for one year. “Out-of-quota imports will be subject to a 25% tariff,” she said.
The European Union imposed quotas in 2019 while the UK was still part of the block to protect against the diversion of steel supplies normally destined for the United States to Europe after US President Donald Trump imposed 25% of the tariffs.
The UK steel industry, with an annual turnover of about $ 2 billion, has warned the government not to lift any so-called EU safeguards, saying it could provoke an influx of imports.
Truss said the extension would give the industry time to appeal the TRA decision, which came before Brussels said it would extend its quota and tariff system for another three years.
She added that the UK will also consider the Trade Remedies framework, a UK-specific post-Brexit system that is designed to protect sectors from unfair trading practices.
“The trade remedy system was first introduced in 2018 under the previous government,” she said. "The current government will review it to make sure it is up to date, supports WTO rules and meets the goals of the post-COVID world."
