The European Commission (EC) sent a statement to the WTO late last week reaffirming its decision to extend steel safeguards until the end of June 2024.
The review of the measures was launched at the end of 2022.
After careful consideration, the EC noted that protective measures are still justified, for example, by the existence of Section 232 in the US. He added that the gloomy outlook for the European steel sector did not justify lifting the measures.
From July, the level of available duty-free quotas for importers will increase by another 4%, continuing the initial level of liberalization of safeguard measures of 4%.
As a result of the review, the EC also confirms that Malaysia will be assigned a country-specific hot rolled coil import quota between July 2023 and June 2024. The investigation also analyzed the list of developing countries to which security measures are applied; all developed countries will now be subject to measures related to the importation of hot-dip galvanized steel coils for use in the automotive industry (group 4b), as well as organic coated sheets (group 5) and large welded pipes (group 25b).
A source at a major South European service center says the decision will not change the European market. In recent quarters, the use of protective quotas has been relatively low. In recent months, steel service centers and consumers have called on the European Commission to lift the protective measures at the end of June.
