(Central News Agency, Brussels, April 13, Comprehensive Foreign Report) EU legislative bodies and national governments today agreed to double tariffs on foreign steel to protect the EU's steel industry from the impact of cheap competition from countries like China.
Agence France-Presse reported that representatives from EU governments and the European Parliament reached an agreement late at night to raise import tariffs on steel to 50% and significantly cut the duty-free quota by 47%.
EU Trade Commissioner Maros Sefcovic stated: "The European steel industry stands firm globally and is crucial for our strategic autonomy and industrial strength, so we cannot turn a blind eye to the critical level of global overcapacity."
He said: "Today's decision will help bring much-needed stability to our manufacturers, allowing the steel industry to thrive in Europe."
Under this agreement, the EU's duty-free quota for imported steel will be reduced to 18.3 million tons per year, which was the EU's total import volume in 2013.
The EU uses 2013 as a benchmark because that year saw global steel overproduction and market imbalance, and Chinese authorities heavily subsidized their domestic steel producers. China's steel production now accounts for more than half of the world's total output.
The new measures will be implemented for all countries importing steel into the EU, with the exception of European Economic Area member states Iceland, Liechtenstein, and Norway.
This proposal will be sent to the European Council and the European Parliament for formal approval before taking effect.
The current steel tariffs will end at the end of June, with a 25% tariff currently imposed on steel exceeding the duty-free quota. (Compiler: Chi Chin-ling) 1150414
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- Source: CNA (Central News Agency)
- Category: regulation