Tata Steel UK CEO, Rajesh Nair, has stated they are ‘disappointed’ by the UK’s new steel quotas due to take effect from 1st July.
The Government is set to reduce the overall quota volumes of tariff-free steel imports by 51%, compared with the current safeguard measures. Any imports above these levels will face a 50% tariff.
Nair stated: “We do not believe the final quota levels published today reflect UK market conditions or the pressures facing the domestic steel industry. In several categories, the quota volumes continue to allow significant import penetration into strategically important UK steel markets, exposing domestic production and supply chains to continued pressure.
“We are disappointed by elements of the final framework announced today and we are very concerned about the implications for the long-term competitiveness, sustainability, growth and future investment outlook for the UK steel sector.”
He continued to highlight that if the Government wants to build a sustainable steel industry capable of meeting 50% of UK demand, quota arrangements will need to provide more support.
He concluded: “We expect the Government to reconsider aspects of the framework and continue working with the UK steel sector to ensure a level playing field that supports domestic production, protects employment and strengthens the wider UK manufacturing supply chain.”
UK Steel director of trade & economics, Peter Brennan, added: “It is clear that there has been an opportunity missed in key areas which will leave key parts of the UK supply chain exposed to heavily subsidised imports that are currently ravaging steel industries in developed countries.”
