Europe introduces new safeguarding regime

Replacing the existing safeguard regime, the new measure introduces a reinforced tariff-rate quota (TRQ) system with lower tariff-free quotas, a higher tariff on imports above quota levels, enhanced monitoring and stronger anti-circumvention tools. Unlike previous trade defence measures, it is designed not only to curb import surges but also to safeguard Europe's steelmaking capacity and support decarbonisation.

Axel Eggert, director general of EUROFER, said: "This is a game changer for Europe's steel industry. It paves the way for restoring up to 15Mt of lost European steel production. After years of mounting pressure, the EU has recognised that maintaining steel production is fundamental to Europe's competitiveness, security and decarbonisation. The industry was facing the abyss. Today's measure gives us the breathing space to rebuild but it is only the beginning."

Protecting upstream steel production is the first step towards securing Europe's wider manufacturing value chain. Steel-using industries are increasingly exposed to import surges of steel-containing products, making it essential that the new measure is extended downstream. This possibility is already foreseen, and EUROFER stands ready to support the downstream sectors concerned. While the measure provides an effective response to the immediate trade impact of global overcapacity, its root causes require co-ordinated international action among like-minded steel-producing economies.

Despite the strengthened safeguards, 18.3Mt of steel imports will continue to enter the EU tariff-free each year. EUROFER stressed that tariff-rate quota allocations should be fair, balanced and reflect established trade flows and highly integrated supply chains.

"This is not about pulling up the drawbridge on steel trade. Europe will remain one of the world's most open steel markets. Tariff-rate quota allocations must be fair and balanced, reflecting long-standing trading relationships and integrated supply chains. That will allow trusted partners to continue supplying the European market while enabling Europe's steel industry to recover and compete."

EUROFER underlined that trade measures alone will not secure Europe's industrial future. The next priority is to lower industrial energy costs, accelerate investment in low-carbon steel, create lead markets that reward European production and extend protection to downstream steel-containing products, ensuring that the steel needed for Europe's clean transition is increasingly made in Europe.

The European Commission will close its public consultation on introducing Mill Test Certificates (MTCs) on 2 July. Producers exporting steel to the EU will be required to provide "melted and poured" information, significantly strengthening traceability by placing responsibility for demonstrating origin with the producer rather than the importer.

"Knowing where steel is melted and poured is fundamental to making this measure work," said Eggert. "Better traceability will strengthen enforcement, improve transparency and reinforce the integrity of Europe's new trade framework. The responsibility for issuing the certificate should rest with the producer not the importer."