EU agrees to double tariffs on foreign steel

EU lawmakers and countries agreed to double tariffs on foreign steel on Monday, to shield the bloc’s struggling industry from a flood of cheap Chinese exports.

European Union governments and parliament representatives reached a late evening deal to hike levies on steel imports to 50 percent and slash the volume allowed in before tariffs apply by 47 percent.

“The shape and global standing of Europe’s steel sector are fundamental to our strategic autonomy and industrial strength. We therefore cannot afford to turn a blind eye to global overcapacity reaching critical levels,” commented the EU’s trade chief, Maros Sefcovic.

“Today’s outcome helps bring much-needed stability for our producers to thrive in Europe”.

Under the deal, which follows a proposal put forward by the European Commission last year, import tariff-free quotas will be reduced to 18.3 million tons a year — the total volume of steel the EU imported in 2013.

That year was chosen because the EU considers the market became unbalanced from that point on because of excess production — mainly due to China, which massively subsidises local steelmakers and now produces more than half the world’s steel.

The new measures will apply to imported products from all countries, except for European Economic Area members Iceland, Liechtenstein and Norway.

They will replace the current safeguard scheme, which imposes 25-percent duties beyond set import quotas but ends at the end of June.

The deal is provisional and needs to be officially endorsed by the European Council representing member states and the parliament before it is formally adopted.