The European Union has agreed to double customs tariffs on steel produced outside the bloc to protect the European metallurgical industry from cheap products from China, LETA reports citing AFP.
The governments of EU countries and representatives of the European Parliament agreed on Monday evening to raise tariffs on steel imports to 50% and to reduce quotas for duty-free imports by 47%.
"The state of the European steel sector and its global status are fundamental to our strategic autonomy and industrial strength. Therefore, we cannot afford to ignore the fact that global overproduction has reached a critical level," said European Commissioner for Trade Maroš Šefčovič. "Today's outcome helps ensure the much-needed stability for our producers."
According to the agreement, adopted following a proposal from the European Commission made last year, quotas for duty-free steel imports will be reduced to 18.3 million tons per year. This volume corresponds to the total amount of steel that the EU imported in 2013.
The year 2013 was chosen as a starting point because, in the EU's view, that is when the market became unbalanced due to overproduction. China is largely blamed for this, as it actively subsidizes local steel producers and now produces more than half of the world's steel.
The new measures will apply to imports from all countries outside the EU, except for the states of the European Economic Area — Iceland, Liechtenstein, and Norway.
The existing 25% tariffs on steel imports exceeding the established quotas will remain in effect until the end of June.
This agreement is preliminary and must receive approval from the European Council and the European Parliament before it is officially adopted.
