New rules to protect the steel industry in the European Union come into force
Brussels, June 30 / WAM / As of July 1, 2026, a new European system will be introduced to protect the steel sector from the repercussions of global surplus production, in a step aimed at ensuring the sustainability of one of the most strategic sectors in the European economy.
The European Commission announced the issuance of executive regulations that determine the mechanism for distributing customs quotas to the Union’s trading partners, within a new regulatory framework that replaces previous protection measures.
The system is based on reducing the total quotas exempt from duties and raising duties imposed on imports that exceed those quotas, which enhances the ability of European producers to face unequal competition.
Under the regulation, annual quotas for duty-free imports were set at 18.3 million tons, with a 50% duty imposed on quantities exceeding these quotas and including 26 categories of steel products.
Clear criteria for distributing quotas were also adopted, ensuring balanced access to the European market while maintaining the diversity of supply sources for industrial users within the Union.
In an attempt to reconcile trade protection with international obligations, the Union allocated half of the total share (50%) exclusively to its partners in the free trade agreements, who represent about 80% of steel imports to the Union, while the other half is available to all partners without discrimination. Thus, the agreement partners maintain a higher market share compared to the general reduction of 47%.
The European Commission confirmed that it sought to address the concerns of trading partners through consultations within the framework of the World Trade Organization, as a number of them agreed in principle to the quotas allocated to them within the negotiations of Article 28 of the GATT Agreement.
The new system also includes traceability requirements for the steel supply chain, requiring companies to disclose the location of the “melt & pour” stage, with the aim of enhancing transparency and preventing circumvention of trade rules.
The executive regulations are scheduled to be implemented urgently for a period of up to six months, and will be re-discussed according to normal procedures before the end of 2026, at a time when the Commission continues its international consultations on the file.
This measure comes within a broader European strategy to address the surplus in global production capacity in the steel sector, which continues to negatively impact international markets.
It also aims to protect jobs in European industry and give companies space to invest in cleaner and more innovative production, in line with European Union plans to enhance industrial competitiveness.
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