Sittings · Document

PROVISIONAL AGREEMENT RESULTING FROM INTERINSTITUTIONAL NEGOTIATIONS 2026-04-22

Proposal for a regulation on the proposal for a regulation of the European Parliament and of the Council addressing the negative trade-related effects of global overcapacity on the Union steel market

Committee on International Trade

22.4.2026

PROVISIONAL AGREEMENT RESULTING FROM INTERINSTITUTIONAL NEGOTIATIONS

Subject: Proposal for a regulation on the proposal for a regulation of the European Parliament and of the Council addressing the negative trade-related effects of global overcapacity on the Union steel market

(COM(2025)0726 – C100245/2025 – 2025/0726(COD))

The interinstitutional negotiations on the aforementioned proposal for a regulation have led to a compromise. In accordance with Rule 75(4) of the Rules of Procedure, the provisional agreement reproduced below is submitted to the Committee on International Trade for decision by way of a single vote.

2025/0726 (COD)

Proposal for a

REGULATION(EU) 2026/...OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

addressing the negative trade-related effects of global overcapacity on the Union steel market and amending Regulation (EU) 2020/2170

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207(2) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1) The steel sector is central to the Union’s competitiveness and security. Steel is also essential for many other industries such as Union’s clean-tech, transport, building and energy infrastructure industries. Preserving a competitive and technologically advanced steel industry is therefore vital for the Union’s economic security. Accordingly, the Union considers that sector strategically important and is committed to ensuring its viability, resilience and long-term sustainability.

(1a) The Union has a longstanding tradition of steel production in towns and regions, where skills have been passed down over generations of steelworkers, who have played a key role in the foundation of Union manufacturing and are essential to sustaining the competitiveness and high social value of the steel sector.

(2) Steel industries across countries and regions, including the Union, are suffering from the negative impact of increasing global structural excess capacity. That global challenge negatively affects the Union’s domestic market and the markets of other countries either directly, through imports from countries with excess capacity, or indirectly, as a result of the ‘push-out’ effect, or in both ways. The effective resolution of global overcapacity requires enhanced joint efforts of the Union and ▌ like-minded partner countries which do not contribute to global overcapacity. The Union will therefore step up its efforts in leading the international work ▌ including in the framework of the Global Forum on Steel Excess Capacity (GFSEC), on addressing the root causes of global overcapacity and implementing solutions strengthening the transparency of the global steel market and taking into consideration modern production and supply techniques, including through the application of the “melt and pour” principle, as well as through the monitoring of imports and exports. The Union remains committed to keeping markets fair and open, and to further strengthening its relationship with existing and future free trade partners. In this spirit, the Union and the like-minded countries should urgently work together with a view to ring-fencing their economies from global overcapacity ▌ and increasing market access among them, reflecting shared strategic interests and mutual benefits, while still ensuring secure, predictable and diversified supply chains.

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(3) An in-depth analysis concluded by the Commission ▌ in 2019 showed that the Union steel industry was already then in a situation of threat of serious injury, and that the situation was likely to develop into actual serious injury in the foreseeable future, in the absence of safeguard measures. The Commission concluded that it would be in the Union’s interest to adopt appropriate measures to avoid a further increase of imports.

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(5) On 31 January 2019, the Commission adopted ▌ Implementing Regulation (EU) 2019/159 imposing a definitive safeguard measure ▌ on certain steel imports, thereby addressing the risk of trade diversion and of serious injury that would ▌ likely have followed for the products covered by that Regulation ▌ . Implementing Regulation (EU) 2019/159 is due to expire on 30 June 2026.

(6) In November 2024, Union leaders adopted the Budapest Declaration on the New European Competitiveness Deal, highlighting the urgent need and determination to make the Union more competitive ▌ . Furthermore, leaders declared their commitment to ensuring an industrial renewal and decarbonisation, and allowing the Union to remain an industrial and technological powerhouse that fosters quality jobs. Union leaders also recognised the need for increasing defence readiness and capabilities, in particular by strengthening the defence technological and industrial base accordingly. To that end, leaders committed to develop an industrial policy for the Union to ensure the growth of tomorrow’s key technologies, while paying particular attention to traditional industries in transition.

(7) Industrial competitiveness of the steel sector is a core priority for the Union to contribute to sustainable growth, long-term prosperity and resilience. Decarbonisation can be a powerful accelerator of growth and resilience when integrated with industrial, competition, economic and trade policies. Overcapacity affects the Union steel industry in the context of its transition towards carbon-neutral production. Therefore, the decarbonisation path of the steel sector in the Union should be one of the elements that can be taken into account by the Commission when amending the volumes of tariff quotas opened under this Regulation and should form part of the elements to be taken into account in the review of the effectiveness of this Regulation.

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(8) Energy-intensive industries are focal sectors requiring urgent support to decarbonise and electrify, and to confront high energy costs, unfair global competition, and complex regulations, all of which harm the competitiveness. It is essential to enable those industries to remain globally competitive and to increase production and capacity utilisation in the Union.

(9) Moreover, as recognised in the Commission Communication of 19 March 2025 entitled “A European Steel and Metals Action Plan”, steel is a metal of strategic importance for the Union’s defence capability. Especially in a context marked by increasing global instability and heightened security pressures, stable and resilient supply chains of ▌ metals, including steel, and a strong and competitive domestic production thereof are essential for defence and aerospace, for achieving economic resilience and for avoiding unwanted dependencies on third-country suppliers.

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(10) The Union has already adopted several trade defence measures in the metals sectors, including in the iron and steel sectors ▌ . Nevertheless, the industry is increasingly negatively impacted by global structural excess capacities and by global distortions, including non-market policies and practices in certain countries that artificially support their domestic industries or circumvent Union trade defence measures and sanctions. The Union is the only major steelmaking region seeing a decrease in capacity. However, these efforts are being completely offset by continuous large capacity additions across other regions, completely detached from the evolution of domestic and global demand. Global overcapacity is expected to increase from the current 602 million tonnes, equivalent to five times the Union demand, to 721 million tonnes by 2027. Hence, any measure on the steel sector should be conceived with a long-term perspective, since global overcapacity is a structural problem, which is unlikely to be resolved in the short or medium-term.

(11) In addition, the recent evolution of third country trade-restrictive measures is further increasing the pressure of imports on the Union market, both in terms of volumes and prices ▌ . Such pressure is expected only to increase further and risks a further decline in Union production.

(11a) The rules-based multilateral trading system, with the WTO at its core, continues to be fundamental for ensuring stability, predictability and fairness in global trade. This Regulation should therefore be implemented in full compliance with the Union’s obligations under the WTO, notably as regards the allocation of tariff quotas.

(12) As a result, the Union steel industry is in a dire situation with the unprecedented loss of ▌ production capacity amounting to more than 30 million tons since 2018, an historically low-capacity utilisation rate reaching 67 % in 2024, and around 30 000 jobs lost since 2018, with several thousand more job losses announced in 2024. The Union steel industry recorded losses in 2024.

(13) Given the rapidly worsening situation of the domestic steel industry, its growing strategic importance and the unsatisfactory progress so far in finding a collective solution addressing global structural overcapacity, notably in the framework of the GFSEC, it is necessary to adopt a ▌ measure replacing Implementing Regulation (EU) 2019/159. At the same time, the Union remains committed to delivering on the agreement, expressed at the 10 October 2025 Ministerial of the GFSEC, to work towards a comprehensive framework for joint action with a view to addressing overcapacity at its root. ▌

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(14a) This Regulation should establish a coherent framework to tackle the negative trade-related effects of overcapacity. In view of the serious disturbances in the steel sector and the rapidly worsening situation of the domestic steel industry, it is necessary to cover all third countries, including those with which the Union has concluded a free trade agreement and those benefiting from autonomous tariff preferences, such as the Union generalised scheme of tariff preferences under Regulation (EU) No 978/2012 of the European Parliament and of the Council. The framework established under this Regulation should provide for, on the one hand, the opening of tariff quotas and the setting of an out-of-quota duty and, on the other hand, the possibility, where appropriate, of applying bilateral safeguard measures in respect of products from third countries with which the Union has concluded a free trade agreement. Where it is not appropriate to apply bilateral safeguard measures, products from third countries with which the Union has concluded a free trade agreement should be subject to the tariff quotas and the out-of-quota duty provided for in this Regulation.

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(15) Whereas under Implementing Regulation (EU) 2019/159 the out-of-quota tariff is set at 25 %, taking into account the level of tariffs in the steel sector in other key markets, it is appropriate to raise the out-of-quota duty to 50 %, to minimise the risk of trade diversion. This duty would be in addition to other duties applying to the product categories covered by this Regulation.

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(17) In view of the close and unique integration under the Agreement on the European Economic Area ▌ , Union imports from ▌ Iceland, ▌ Liechtenstein and Norway should be excluded from the application of the tariff quotas and the out-of-quota duty.

(18) The total volume of tariff quotas should be calculated applying the imports’ market share in the Union market in the year 2013 as reference, which was around 13 %, to the overall consumption in the Union steel market in 2024, which is the latest year for which complete data are available ▌ . That results in a total annual tariff quota volume of 18 345 922 tonnes. The calculation should not allocate the proportion of imports originating in Belarus and the Russian Federation ▌ , which are currently subject to import bans.

(19) The tariff quotas should be allocated per product category based on the share of imports that each product category held over the period 2022-2024. That reference period for allocating the share of the quota is ▌ appropriate as it reflects accurately the more recent trade flows.

(20) The tariff quotas should be administered on a quarterly basis in line with the management system provided for in ▌ Commission Implementing Regulation (EU) 2015/2447. That type of administration ensures that the measure is effective by avoiding disproportionately large volumes of imports in a very short period, while not unduly hindering trade flows. During the first year of application of this Regulation, those tariff quotas that are not used within one quarter should ▌ be carried over to the next quarter within the same yearly period of application of the tariff rate quota, in order to provide greater flexibility for economic operators and contribute to ensuring continuity in supply chains and the fulfilment of existing supply contracts. After the first year of application of this Regulation, it might be necessary to adjust the rules on the carry-over of unused tariff quotas, taking into account the market reactions to the measures provided for by this Regulation as well as the need to address possible market disturbances. For instance, experience with the administration of tariff-rate quotas in the steel sector gathered with Implementing Regulation (EU) 2019/159 has shown that the carry-over of unused tariff quotas may, in certain circumstances, contribute to increased import pressure in particular quarters or product categories, notably where market demand weakens or consumption decreases while imports remain high. Conversely, the absence of carry-over can, in certain circumstances, contribute to difficulties for ensuring continuity in supply chains and the fulfilment of existing supply contracts. Thus, the Commission should be empowered to determine whether the carry-over of unused tariff quotas is to be allowed, taking into account, on the one hand, the increased level of import pressure and, on the other hand, the level of average use of tariff rates quotas and the insufficient availability of supply for downstream steel users. In particular, where the average use of the tariff rate quotas for a given product category is above 80% during the first three quarters of the yearly period of application of the tariff rate quotas, the carry-over should be allowed, since the risk of a very high volume of free-of-duty imports in a certain quarter would be significantly reduced.

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(21) To ensure that the measure is effective in tackling the effects of global overcapacity, and in light of the specificities of steel products and the modern production and supply techniques, it is important to identify the country of “melt and pour”, that being the original location in which raw steel or iron is initially produced in liquid form within a steel- or iron-making furnace and subsequently cast into its primary solid state. That primary solid state can encompass either a semi-finished product, including but not limited to slabs, billets, or ingots, or a finished steel mill product. Importers should be required to provide evidence on the country of “melt and pour”, such as by means of a mill test certificate. Such a requirement would increase transparency in the domestic supply chain for steel imports and allow the Commission to obtain reliable information on the origin of steel imports into the Union.

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(22) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission to lay down the type of evidence to be provided by importers to prove the country of “melt and pour”. Before exercising its implementing powers with regard to the evidence on the country of “melt and pour”, the Commission should carry out consultations with relevant stakeholders, including steel producers, users, and Member States to ensure that the type of evidence required is sufficient to prove the country of “melt and pour”, and should carefully assess the specific situation of small and medium-sized enterprises (SMEs) and avoid disproportionate administrative burdens.

(22a) Implementing powers should also be conferred on the Commission to lay down the country allocation of tariff quotas opened under this Regulation. In laying down that allocation, the Commission should take into account the import market share that prevailed in the Union steel market prior to the impact of global overcapacity. The year 2013 is the most appropriate basis for that calculation, since it was not impacted by the prevalence of global overcapacity, which surged significantly in 2015, but the effects of which were already visible, in terms of relevant increased import penetration in 2014. At the same time, previous tariff quotas allocations, in particular those laid down under Commission Implementing Regulations (EU) 2023/1331 and (EU) 2023/2840 regarding trade flows of steel products originating in the United Kingdom and brought into Northern Ireland by direct transport from other parts of the United Kingdom should be taken into account for the allocation of tariff quotas. Furthermore, the Commission should take into account current and future free trade agreements, in particular those that are at an advanced stage of negotiations. Other elements should, as applicable, also be taken into account, such as trade distorting effects of third country measures impacting the Union steel market, the fact that a third country is found to be in breach of conventions of the International Labour Organization (ILO) or multilateral environmental agreements, the conclusion by the Union of international agreements under Article XXVIII of the General Agreement on Tariffs and Trade 1994, the conclusion of any international agreement or non-binding understanding addressing the levels of global overcapacity for the products concerned by this Regulation and the need to ensure diversification of sources of supply. Similarly, the interests of candidate countries facing an exceptional and immediate security situation, in particular where they previously benefitted from a preferential access for the product categories subject to this Regulation, such as Ukraine, should be taken into account, without undermining the effectiveness of the measure. Furthermore, the Commission should take into account the tariff quotas, if any, allocated as part of bilateral safeguard measures so as to ensure that the overall amount of tariff quotas opened by the Union does not exceed the amount provided for in the relevant Annex. Moreover, with a view to ensuring the coherence and consistency of the Union’s external action, where restrictive measures prohibit the import from third countries of one or more product categories falling within the scope of this Regulation, the Commission should not allocate tariff quotas to those third countries for those product categories. Finally, from 1 October 2027, the Commission should take into account the information gathered from importers on the country of “melt and pour”.

(23) The Commission should also be empowered to apply, by means of implementing acts, where necessary, bilateral safeguard measures on imports of products ▌ originating in those countries with which the ▌ Union has concluded a free trade agreement. Those bilateral safeguard measures should comply with the ▌ applicable agreement. In determining which bilateral safeguard measures to apply, the Commission should have regard to the need to establish a coherent scheme under this Regulation and to address the negative trade-related effects of overcapacity on the Union steel market. Furthermore, with a view to ensuring that the Commission is able to apply bilateral safeguard measures swiftly, it is appropriate to clarify that the conditions and procedures laid down in Regulation (EU) 2019/287 of the European Parliament and of the Council should not apply to bilateral safeguard measures applied under this Regulation.

(23a) Those implementing powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and the Council. The examination procedure should be used for the adoption of the relevant implementing acts. The Commission should adopt immediately applicable implementing acts where, in duly justified cases relating to the need to ensure the coincidence between the application of this Regulation and the country allocation of tariff quotas or the application of bilateral safeguard measures, imperative grounds of urgency so require.

(24) In order to ensure that the level of quotas opened in relation to imports into the Union is adapted to changing circumstances in the markets of the products covered by this Regulation ▌ , the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to amend the volumes of tariff quotas laid down in this Regulation. At the same time, any amendment to those volumes should remain consistent with the objectives of this Regulation. Thus, it is appropriate to set a minimum and a maximum combined value of the volumes of tariff quotas laid down in this Regulation, whilst taking into account that according to the OECD Steel Outlook consumption within the Union is forecast to remain stable until 2030. The maximum combined value should be calculated by applying a 13 % market share to the level of consumption registered in 2018, which was the highest over the period 2013-2024. The minimum combined value should be determined having regard to the need to provide for an equivalent level of flexibility in the event of a downturn of the market. Accordingly, the Commission should be empowered to amend the volumes of tariff quotas laid down in this Regulation only insofar as their total value remains between 14 400 000 tonnes and 22 200 000 tonnes. In exercising its delegated powers, the Commission should take into account, as applicable, the evolution of demand, changes in the import market shares, significant developments in overcapacity, the level of progress made in the decarbonisation path of the steel sector in the Union having regard to the Union’s climate goals, the evolution and extent of third country measures impacting imports of steel, potential issues of availability of supply in certain product categories linked to insufficient capacity and to significant related price increases, the objectives of the Union’s common security and defence policy, and undue crowding-out effects in certain tariff quotas. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(24a) Where the Commission allocates tariffs quotas, applies bilateral safeguard measures or amends the volumes of tariff quotas, it should take into account the Union interest. The determination of the Union interest should be based on all available information and consist of an appreciation of the various interests at stake, taken as a whole. Those interests include the interests of Union economic operators, including upstream and downstream industries, and the interests of Union final consumers.

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(25a) This Regulation establishes a comprehensive scheme to address steel overcapacity, which entails new requirements for Union economic operators. It is therefore necessary for the Commission to provide an online contact point for Union economic operators to request relevant information on the implementation of this Regulation, including as regards the tariff administration scheme, the allocation of tariff quotas and the application of the “melt and pour” principle.

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(26) The Commission should conduct periodic reviews of the product scope of this Regulation. In particular, by 31 December 2026, the Commission should assess the necessity of amending the product scope to cover certain products. By 30 June 2027, the Commission should assess the necessity of amending the product scope, in particular with a view to determining whether it should also cover products that are made of, or contain, a significant amount of steel, including with priority downstream iron and steel products not covered by this Regulation. Furthermore, the Commission should conduct further reviews of the product scope every two years, unless significant market disruptions or sudden changes in global trade patterns require an earlier assessment. Moreover, it is important that the Commission conducts timely consultations of relevant stakeholders ahead of each review of the product scope. In particular, in view of the short timeframe for the initial review, a consultation should be initiated by 1 July 2026. Where the reviews show the necessity of amending the product scope, the Commission should consider submitting a legislative proposal to that effect.

(26a) By ... [2 years from the date of entry into force of this Regulation], the Commission should, based on the information collected under this Regulation, assess whether it is necessary to designate the country of “melt and pour” as the basis to benefit from tariff quotas provided for in this Regulation, in particular to prevent steel produced in certain countries contributing to global overcapacity from unduly entering the Union’s market following further transformation in other countries. If necessary, the Commission should consider making a legislative proposal to that effect.

(26b) Every two years, the Commission should submit a report to the European Parliament and to the Council on the implementation of this Regulation. That report should be made public and should notably contain information on the use and evolution of tariff quotas and the category and amount of imports falling outside of the tariff quotas opened.

(27) By ... [3 years from the date of entry into force of this Regulation], and at least every three years thereafter, the Commission should evaluate the evolution of the key parameters that justified the adoption of this Regulation, including the evolution and trends of global overcapacity and its effects on the steel market and the Union interest; review the situation of third country trade restrictive measures on steel and the implications and effects they might have, or be likely to have, in terms of risk of trade diversion into the Union market; analyse the situation concerning the existence of non-market policies and practices in third countries and their impact on the Union steel market; assess the evolution of situation of the Union steel industry, including price levels and capacity utilisation, the impact on upstream and downstream industries as well as on final consumers in the Union, and the decarbonisation path of the steel sector in the Union having regard to the Union's climate goals.

(27a) It is necessary to amend Regulation 2020/2170 of the European Parliament and of the Council in order to ensure the continued application of the existing arrangements for the steel products originating in the United Kingdom and released for free circulation in Northern Ireland that are listed in the Annex to that Regulation. The Commission should be empowered to modify, by means of delegated acts, the list of products in that Annex.

(27b) Given the need to ensure that the measures provided for in this Regulation apply from 1 July 2026, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union,

HAVE ADOPTED THIS REGULATION:

Article -1

1. The purpose of this Regulation is to address the negative trade-related effects of global overcapacity on the Union steel market by establishing a comprehensive framework based, on the one hand, on the opening of tariff quotas and the setting of an out-of-quota duty in respect of the products within the scope of this Regulation imported into the Union, and, on the other hand, on the possibility, where appropriate, of applying bilateral safeguard measures in respect of those products originating in the third countries with which the Union has concluded a free trade agreement.

2. Measures adopted under this Regulation shall not restrict trade beyond what is strictly necessary to address the negative effects of global overcapacity on the Union steel market.

Article 1

1. Tariff quotas of the Union are hereby opened, on an annual basis, in relation to imports into the Union of each of the product categories ▌ as specified in Annex I ▌ .

2. For each product category, a specific volume of tariff quota is opened as provided under Annex II on a yearly basis from 1 July of each year to 30 June of the following year ('yearly period of application'). The total annual volume of tariff rate quotas is laid down in Annex II.

3. Where the relevant tariff quota is exhausted or where imports of the product categories do not benefit from the relevant tariff quota, the imports of the product categories set out in Annex I shall be subject to a custom duty at the rate of 50% ad valorem.

3a. This Article shall apply to all imports of the product categories set out in Annex I, including imports of products originating in a country with which the Union has concluded an agreement providing for tariff preferences or in a country benefitting from autonomous tariff preferences.

3b. This Article shall not apply to products originating in:

(a) Iceland, Liechtenstein or Norway;

(b) countries in respect of which safeguard measures apply pursuant to Article 4a.

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Article 2

1. The tariff quotas set out in Article 1 shall be managed by the Commission and the Member States in accordance with the management system for tariff quotas provided for in Articles 49 to 54 of Commission Implementing Regulation (EU) 2015/2447.

2. The tariff quotas shall be administered quarterly.

3. The drawings on each quarterly quota shall be stopped on the twentieth working day of the Commission following the end of the quarterly period.

4. From 1 July 2026 to 30 June 2027, the unused tariff quota volumes in one quarter shall ▌ be carried over to the next quarter within the same yearly period of application of the tariff rate quota.

5. The Commission shall adopt implementing acts determining whether, for each product category set out in Annex I, the unused tariff quota volumes in one quarter are to be carried over to the next quarter within the same yearly period of application, taking into account, as applicable:

(a) the increased level of import pressure, in particular due to the concentration of a very high volume of free-of-duty imports in a certain quarter;

(b) the average use of tariff rate quotas during the first three quarters of the yearly period of application, in particular where that average use is above 80%;

The implementing acts referred to in the first subparagraph of this paragraph shall be adopted in accordance with the procedure referred to in Article 5(2). The first of those implementing acts shall apply from 1 July 2027.

Article 3

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1. At the moment of importation, importers of product categories set out in Annex I shall provide verifiable appropriate evidence, such as a mill test certificate, to prove the country in which the relevant raw steel or iron was initially produced in liquid form within a steel- or ironmaking furnace and subsequently cast into its first solid state (‘country of “melt and pour”’).

2. The Commission is empowered to adopt implementing acts to determine the type of evidence to be provided by importers pursuant to paragraph 1 of this Article while taking into account the specific situation of small and medium-sized enterprises (SMEs) and avoiding disproportionate administrative burdens. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 5(2). The first of the implementing acts referred to in the first subparagraph shall be adopted by 31 August 2026.

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Article 4

▌ The Commission shall adopt implementing acts laying down the country allocation of the tariff quotas set out in Annex II taking into account the Union interest and to reflect the following elements, as applicable:

(a) tariff quota levels equivalent to the import market share that prevailed in the Union steel market in 2013 prior to the impact of global overcapacity on the Union market;

(b) tariff quotas per product category based on the share of imports that each product category held over the period 2022-2024, calculated as a share of the tariff quota levels referred to in point (a);

(ca) trade distorting effects of third country measures impacting the Union steel market;

(cb) whether a third country is found to be in breach of ILO conventions or multilateral environmental agreements;

(d) any international agreement concluded by the Union under Article XXVIII of the General Agreement on Tariffs and trade 1994 concerning the tariff quotas opened in relation to products listed in Annex I;

(e) any international agreement or non-binding understanding addressing the levels of global overcapacities for the products concerned by this Regulation;

(f) diversification of sources of supply;

(g) the situation of a candidate country facing an exceptional and immediate security situation, in particular where it previously benefitted from a preferential access to the Union’s steel market for the product categories subject to this Regulation;

(h) information gathered in application of Article 3.

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Where the Commission has applied bilateral safeguard measures pursuant to Article 4a which entail tariff quotas, the implementing acts referred to in the first paragraph shall not allocate an amount of tariff quotas corresponding to the tariff quotas opened as part of those bilateral safeguard measures.

Where restrictive measures adopted pursuant to Article 29 of the Treaty on European Union and Article 215 TFEU prohibit the import from third countries of one or more product categories set out in Annex I to this Regulation, the implementing acts referred to in the first paragraph of this Article shall not allocate tariff quotas to those third countries for those product categories.

The implementing acts referred to in the first paragraph shall be adopted in accordance with the procedure referred to in Article 5(2). The first of those implementing acts shall apply from 1 July 2026.

▌ On duly justified imperative grounds of urgency relating to the need to ensure the coincidence between the entry into force of this Regulation and the country allocation of tariff quotas set out in Annex II, the Commission shall adopt immediately applicable implementing acts in accordance with the procedure referred to in Article 5(3).

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Article 4a

▌ By way of derogation from Regulation (EU) 2019/287, the Commission may adopt implementing acts applying bilateral safeguard measures on imports of products within the scope of this Regulation originating in those countries with which the ▌ Union has concluded a free trade agreement. Those safeguard measures shall comply with the ▌ applicable agreement and take into account the Union interest.

▌ Those implementing acts shall be adopted in accordance with the procedure referred to in Article 5(2).

▌ On duly justified imperative grounds of urgency relating to the need to ensure that the bilateral safeguard measures may enter into force immediately upon the entry into force of this Regulation, the Commission may adopt immediately applicable implementing acts in accordance with the procedure referred to in Article 5(3).

Article 5

1. The Commission shall be assisted by the Trade Barriers Committee established by Article 7 of Regulation (EU) No 2015/1843 of the European Parliament and of the Council.

2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

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3. Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011 in conjunction with Article 5 thereof, shall apply.

Article 6

1. The Commission is empowered to adopt delegated acts in accordance with Article 7 to amend the volumes of tariff quotas set out in Annex II, while ensuring that their total value is neither lower than 14 400 000 tonnes nor higher than 22 200 000 tonnes.

The Commission shall take into account the Union interest and, as applicable, the following elements:

(a) the evolution of demand;

(b) changes in the import market shares;

(ca) the decarbonisation path of the steel sector in the Union;

(d) the evolution and extent of third country measures impacting imports of steel;

(e) potential issues of availability of supply in certain product categories linked to insufficient capacity readily available in the Union in certain product categories compared to demand, and to significant related price increases, negatively impacting the Union’s downstream industries.

(ea) the objectives of the Union's common security and defence policy;

(f) undue crowding-out effects in certain tariff quotas.

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2. Where, in the case of sudden changes on the markets of the products covered by this Regulation, ▌ it is necessary quickly to amend ▌ this Regulation and imperative grounds of urgency so require, the procedure provided for in Article 8 shall apply to delegated acts adopted ▌ pursuant to this Article.

Article 7

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2. The power to adopt delegated acts referred to in Article 6 shall be conferred on the Commission for a period of 5 years from ... [date of entry into force of this Regulation]. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of that 5 year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

3. The delegation of power referred to in Article 6 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making ▌ .

5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

6. A delegated act adopted pursuant to Article 6 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Article 8

1. ▌Delegated acts ▌ adopted under this Article ▌ shall enter into force without delay and shall apply as long as no objection is expressed in accordance with paragraph 2. The notification of a delegated act to the European Parliament and to the Council shall state the reasons for the use of the urgency procedure.

2. Either the European Parliament or the Council may object to a delegated act in accordance with the procedure referred to in Article 7(6). In such a case, the Commission shall repeal the act immediately following the notification of the decision to object by the European Parliament or by the Council.

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Article 8a

The Commission shall make an online contact point available. Union economic operators may use that contact point to request relevant information concerning the implementation of this Regulation.

Article 9

1. By 31 December 2026, the Commission shall assess the necessity of amending the product scope to cover the following products: Tubes, pipes and hollow profiles, of cast iron (CN codes 73 030010, 73 030090); Non alloy and other alloy wire (CN codes 72 29 2000, 72 29 9020, 72 29 9050, 72 29 9090); Stainless Wire (CN codes 72 23 0011, 72 23 0019, 72 23 0091, 72 23 0099); Non-Alloy and Other Alloy Forged Bars (CN codes 7214 1000, 7228 1050, 7228 4010, 7228 4090). Where sufficient evidence is gathered in its assessment demonstrating the necessity to amend the product scope of this Regulation, the Commission may submit a legislative proposal without undue delay. To this end, the Commission shall, by 1 July 2026, initiate a consultation process with relevant stakeholders, including economic operators and Member States.

1a. By 30 June 2027, the Commission shall assess the necessity of amending the product scope, taking into account in particular whether it should cover additional products that are made of, or contain, a significant amount of steel including with priority downstream iron and steel products not covered by Annex 1. Where sufficient evidence is gathered in its assessment demonstrating the necessity to amend the product scope of this Regulation, the Commission may submit a legislative proposal without undue delay.

1b. The Commission shall assess the necessity of amending the product scope every two years after the assessment referred to in paragraph 2, taking into account the wider situation of Union competitiveness and the Union steel industry, both upstream and downstream actors, in particular the situation for SMEs, as well as the Union’s common security and defence policy. Where significant market disruptions or sudden changes in global trade patterns occur, the Commission shall conduct an earlier assessment.

1c. For the purpose of the assessments referred to in paragraphs 2 and 3, the Commission shall initiate a timely consultation process with relevant stakeholders, including economic operators and Member States.

1d. By ... [2 years from the date of entry into force of this Regulation], the Commission shall, based on the information collected pursuant to Article 3, assess whether it is necessary to designate the country of “melt and pour” as the basis to benefit from the tariff quotas provided for in this Regulation. Based on that assessment, the Commission may submit a legislative proposal to that effect.

2. By … [three years from the date of entry into force of this Regulation], and every three years thereafter, the Commission shall evaluate the effectiveness of this Regulation. Such evaluation shall have regard to the persistence of the circumstances that justified the adoption of this Regulation, the Union interest, and the situation of the Union steel ▌ industry, including price levels and capacity utilisation, the impact on upstream and downstream industries as well as on final consumers in the Union, and the decarbonisation path of the steel sector in the Union. For the purpose of that evaluation, the Commission shall carry out broad consultations with the relevant stakeholders throughout the steel value chain. Based on that evaluation, the Commission may submit a legislative proposal to amend ▌ this Regulation.

2a. The Commission shall provide a report on the implementation of this Regulation to the European Parliament and to the Council every two years. That report shall be made public. The first report shall be provided by 30 June 2028.

Article 9a

Regulation (EU) 2020/2170 is amended as follows:

(a) in Article 1, paragraph 2 is replaced by the following: '2. Goods listed in the Annex originating in the United Kingdom that fall within the scope of Regulation (EU) …/… of the European Parliament and of the Council* + and are brought into Northern Ireland by direct transport from other parts of the United Kingdom shall also be eligible for treatment pursuant to Union import tariff rate quotas if those goods are released for free circulation in the territory of Northern Ireland. * Regulation (EU) …/… of the European Parliament and of the Council addressing the negative trade-related effects of global overcapacity on the Union steel market and amending Regulation (EU) 2020/2170 + OJ: Please insert in the text the number of the Regulation in document: PE-CONS (2025/0726(COD)) and in the corresponding footnote the number, date of adoption and publication reference of that Regulation, including its ELI number.'

(b) Article 1a is replaced by the following: ‘Article 1a The Commission is empowered to adopt delegated acts, in accordance with Article 1b, amending this Regulation in order to add to the list set out in the Annex certain categories of goods originating in the United Kingdom that fall within the scope of Regulation (EU) …/…++ and that are brought into Northern Ireland by direct transport from other parts of the United Kingdom provided that the United Kingdom has demonstrated to the satisfaction of the Union a need for those goods to be released for free circulation in Northern Ireland. ++ OJ: Please insert in the text the number of the Regulation in document: PE-CONS (2025/0726(COD)).’

Article 10

This Regulation shall enter into force on the ▌ day following that of its publication in the Official Journal of the European Union.

It shall apply from 1 July 2026.

However, Article 3(2), Article 4, except for paragraph 1, point (h) thereof, Article 4a, and Article 5 shall apply from ... [date of entry into force of this Regulation]. Article 3(1) shall apply from 1 October 2026. Article 4(1), point (h), shall apply from 1 October 2027.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Strasbourg,

For the European Parliament For the Council

The President The President

ANNEX I

Product categories covered by this regulation

Product category number

Product category name

CN code

Non Alloy and Other Alloy Hot Rolled Sheets and Strips

7208 10 00, 7208 25 00, 7208 26 00, 7208 27 00, 7208 36 00, 7208 37 00, 7208 38 00, 7208 39 00, 7208 40 00, 7208 52 10, 7208 52 99, 7208 53 10, 7208 53 90, 7208 54 00, 7211 13 00, 7211 14 00, 7211 19 00, 7225 19 10, 7225 30 10, 7225 30 30, 7225 30 90, 7225 40 15, 7225 40 90, 7226 19 10, 7226 91 20, 7226 91 91, 7226 91 99

Non Alloy and Other Alloy Hot Rolled Sheets and Strips

7212 60 00

Non Alloy and Other Alloy Cold Rolled Sheets

7209 15 00, 7209 16 90, 7209 17 90, 7209 18 91, 7209 25 00, 7209 26 90, 7209 27 90, 7209 28 90, 7209 90 20, 7209 90 80, 7211 23 20, 7211 23 30, 7211 23 80, 7211 29 00, 7211 90 20, 7211 90 80, 7225 50 20, 7225 50 80, 7226 20 00, 7226 92 00

3.A

Electrical Sheets (other than GOES)

7209 16 10, 7209 17 10, 7209 18 10, 7209 26 10, 7209 27 10, 7209 28 10

3.B

7225 19 90, 7226 19 80

Metallic Coated Sheets

CN code 7212 50 20, TARIC Codes: 7210 41 00 20, 7210 41 00 30, 7210 49 00 20, 7210 49 00 30, 7210 61 00 20, 7210 61 00 30, 7210 69 00 20, 7210 69 00 30, 7212 30 00 20, 7212 30 00 30, 7212 50 61 20, 7212 50 61 30, 7212 50 69 20, 7212 50 69 30, 7225 92 00 20, 7225 92 00 30, 7225 99 00 11, 7225 99 00 22, 7225 99 00 23, 7225 99 00 41, 7225 99 00 45, 7225 99 00 91, 7225 99 00 92, 7225 99 00 93, 7226 99 30 10, 7226 99 30 30, 7226 99 70 11, 7226 99 70 13, 7226 99 70 91, 7226 99 70 93, 7226 99 70 94

Metallic Coated Sheets

CN Codes: 7210 20 00, 7210 30 00, 7210 90 80, 7212 20 00, 7212 50 30, 7212 50 40, 7212 50 90, 7225 91 00, 7226 99 10 TARIC codes: 7210 41 00 80, 7210 49 00 80, 7210 61 00 80, 7210 69 00 80, 7212 30 00 80, 7212 50 61 80, 7212 50 69 80, 7225 92 00 80, 7225 99 00 25, 7225 99 00 95, 7226 99 30 90, 7226 99 70 19, 7226 99 70 96

Organic Coated Sheets

7210 70 80, 7212 40 80,

Tin Mill products

7209 18 99, 7210 11 00, 7210 12 20, 7210 12 80, 7210 50 00, 7210 70 10, 7210 90 40, 7212 10 10, 7212 10 90, 7212 40 20

Non Alloy and Other Alloy Quarto Plates

7208 51 20, 7208 51 91, 7208 51 98, 7208 52 91, 7208 90 20, 7208 90 80, 7210 90 30, 7225 40 12, 7225 40 40, 7225 40 60

Stainless Hot Rolled Sheets and Strips

7219 11 00, 7219 12 10, 7219 12 90, 7219 13 10, 7219 13 90, 7219 14 10, 7219 14 90, 7219 22 10, 7219 22 90, 7219 23 00, 7219 24 00, 7220 11 00, 7220 12 00

Stainless Cold Rolled Sheets and Strips

7219 31 00, 7219 32 10, 7219 32 90, 7219 33 10, 7219 33 90, 7219 34 10, 7219 34 90, 7219 35 10, 7219 35 90, 7219 90 20, 7219 90 80, 7220 20 21, 7220 20 29, 7220 20 41, 7220 20 49, 7220 20 81, 7220 20 89, 7220 90 20, 7220 90 80

Stainless Hot Rolled Quarto Plates

7219 21 10, 7219 21 90

Non Alloy and Other Alloy Merchant Bars and Light Sections

7214 30 00, 7214 91 10, 7214 91 90, 7214 99 31, 7214 99 39, 7214 99 50, 7214 99 71, 7214 99 79, 7214 99 95, 7215 90 00, 7216 10 00, 7216 21 00, 7216 22 00, 7216 40 10, 7216 40 90, 7216 50 10, 7216 50 91, 7216 50 99, 7216 99 00, 7228 10 20, 7228 20 10, 7228 20 91, 7228 30 20, 7228 30 41, 7228 30 49, 7228 30 61, 7228 30 70, 7228 30 89, 7228 60 20, 7228 60 80, 7228 70 10, 7228 70 90, 7228 80 00, TARIC code: 7228 30 69 99

Rebars

7214 20 00, 7214 99 10, TARIC code: 7228 30 69 11

Stainless Bars and Light Sections

7222 11 11, 7222 11 19, 7222 11 81, 7222 11 89, 7222 19 10, 7222 19 90, 7222 20 11, 7222 20 19, 7222 20 21, 7222 20 29, 7222 20 31, 7222 20 39, 7222 20 81, 7222 20 89, 7222 30 51, 7222 30 91, 7222 30 97, 7222 40 10, 7222 40 50, 7222 40 90

Stainless Wire Rod

7221 00 10, 7221 00 90

Non Alloy and Other Alloy Wire Rod

7213 10 00, 7213 20 00, 7213 91 10, 7213 91 20, 7213 91 41, 7213 91 49, 7213 91 70, 7213 91 90, 7213 99 10, 7213 99 90, 7227 10 00, 7227 20 00, 7227 90 10, 7227 90 50, 7227 90 95

Angles, Shapes and Sections of Iron or Non Alloy Steel

7216 31 10, 7216 31 90, 7216 32 11, 7216 32 19, 7216 32 91, 7216 32 99, 7216 33 10, 7216 33 90

Sheet Piling

7301 10 00

Railway Material

7302 10 22, 7302 10 28, 7302 10 40, 7302 10 50, 7302 40 00

Gas pipes

7306 30 41, 7306 30 49, 7306 30 72, 7306 30 77

Hollow sections

7306 61 10, 7306 61 92, 7306 61 99

Seamless Stainless Tubes and Pipes

7304 11 00, 7304 22 00, 7304 24 00, 7304 41 00, 7304 49 83, 7304 49 85, 7304 49 89

Other Seamless Tubes

7304 19 10, 7304 19 30, 7304 19 90, 7304 23 00, 7304 29 10, 7304 29 30, 7304 29 90, 7304 31 20, 7304 31 80, 7304 39 50, 7304 39 82, 7304 39 83, 7304 39 88, 7304 51 81, 7304 51 89, , 7304 59 30, 7304 59 82, 7304 59 83, 7304 59 89, 7304 90 00

25.A

Large welded tubes

7305 11 00,7305 12 00

25.B

7305 19 00, 7305 20 00, 7305 31 00, 7305 39 00, 7305 90 00

Other Welded Pipes

7306 11 00, 7306 19 00, , 7306 21 00, 7306 29 00, 7306 30 12, 7306 30 18, 7306 30 80, 7306 40 20, 7306 40 80, 7306 50 21, 7306 50 29, 7306 50 80, 7306 69 10, 7306 69 90, 7306 90 00

Non-alloy and other alloy cold finished bars

7215 10 00, 7215 50 11, 7215 50 19, 7215 50 80, 7228 10 90, 7228 20 99, 7228 50 20, 7228 50 40, 7228 50 61, 7228 50 69, 7228 50 80

Non Alloy Wire

7217 10 10, 7217 10 31, 7217 10 39, 7217 10 50, 7217 10 90, 7217 20 10, 7217 20 30, 7217 20 50, 7217 20 90, 7217 30 41, 7217 30 49, 7217 30 50, 7217 30 90, 7217 90 20, 7217 90 50, 7217 90 90

ANNEX II

Volume of quotas per product category

The total annual volume of tariff rate quotas shall be 18 345 922 tonnes.

Product category number

Product category name

CN code

TRQ volume allocated (in tons)

Out-of-quota duty level

Non Alloy and Other Alloy Hot Rolled Sheets and Strips

5,198,712

50%

Non Alloy and Other Alloy Hot Rolled Sheets and Strips

7212 60 00

4,581

50%

Non Alloy and Other Alloy Cold Rolled Sheets

1,544,759

50%

3.A

Electrical Sheets (other than GOES)

7209 16 10, 7209 17 10, 7209 18 10, 7209 26 10, 7209 27 10, 7209 28 10

612

50%

3.B

7225 19 90, 7226 19 80

199,079

50%

Metallic Coated Sheets

CN code 7212 50 20 TARIC Codes: 7210 41 00 20, 7210 41 00 30, 7210 49 00 20, 7210 49 00 30, 7210 61 00 20, 7210 61 00 30, 7210 69 00 20, 7210 69 00 30, 7212 30 00 20, 7212 30 00 30, 7212 50 61 20, 7212 50 61 30, 7212 50 69 20, 7212 50 69 30, 7225 92 00 20, 7225 92 00 30, 7225 99 00 11, 7225 99 00 22, 7225 99 00 23, 7225 99 00 41, 7225 99 00 45, 7225 99 00 91, 7225 99 00 92, 7225 99 00 93, 7226 99 30 10, 7226 99 30 30, 7226 99 70 11, 7226 99 70 13, 7226 99 70 91, 7226 99 70 93, 7226 99 70 94

1,620,686

50%

Metallic Coated Sheets

1,238,995

50%

Organic Coated Sheets

7210 70 80, 7212 40 80,

627,871

50%

Tin Mill products

7209 18 99, 7210 11 00, 7210 12 20, 7210 12 80, 7210 50 00, 7210 70 10, 7210 90 40, 7212 10 10, 7212 10 90, 7212 40 20

542,840

50%

Non Alloy and Other Alloy Quarto Plates

7208 51 20, 7208 51 91, 7208 51 98, 7208 52 91, 7208 90 20, 7208 90 80, 7210 90 30, 7225 40 12, 7225 40 40, 7225 40 60,

1,196,903

50%

Stainless Hot Rolled Sheets and Strips

7219 11 00, 7219 12 10, 7219 12 90, 7219 13 10, 7219 13 90, 7219 14 10, 7219 14 90, 7219 22 10, 7219 22 90, 7219 23 00, 7219 24 00, 7220 11 00, 7220 12 00

153,186

50%

Stainless Cold Rolled Sheets and Strips

496,342

50%

Stainless Hot Rolled Quarto Plates

7219 21 10, 7219 21 90

17,025

50%

Non Alloy and Other Alloy Merchant Bars and Light Sections

881,735

50%

Rebars

7214 20 00, 7214 99 10, TARIC code: 7228 30 69 11

844,526

50%

Stainless Bars and Light Sections

133,595

50%

Stainless Wire Rod

7221 00 10, 7221 00 90

40,462

50%

Non Alloy and Other Alloy Wire Rod

7213 10 00, 7213 20 00, 7213 91 10, 7213 91 20, 7213 91 41, 7213 91 49, 7213 91 70, 7213 91 90, 7213 99 10, 7213 99 90, 7227 10 00, 7227 20 00, 7227 90 10, 7227 90 50, 7227 90 95

1,569,532

50%

Angles, Shapes and Sections of Iron or Non Alloy Steel

7216 31 10, 7216 31 90, 7216 32 11, 7216 32 19, 7216 32 91, 7216 32 99, 7216 33 10, 7216 33 90

184,607

50%

Sheet Piling

7301 10 00

31,263

50%

Railway Material

7302 10 22, 7302 10 28, 7302 10 40, 7302 10 50, 7302 40 00

16,472

50%

Gas pipes

7306 30 41, 7306 30 49, 7306 30 72, 7306 30 77

222,413

50%

Hollow sections

7306 61 10, 7306 61 92, 7306 61 99

499,493

50%

Seamless Stainless Tubes and Pipes

7304 11 00, 7304 22 00, 7304 24 00, 7304 41 00, 7304 49 83, 7304 49 85, 7304 49 89

32,967

50%

Other Seamless Tubes

268,901

50%

25.A

Large welded tubes

7305 11 00,7305 12 00

28,749

50%

25.B

7305 19 00, 7305 20 00, 7305 31 00, 7305 39 00, 7305 90 00

83,616

50%

Other Welded Pipes

7306 11 00, 7306 19 00, , 7306 21 00, 7306 29 00, 7306 30 12, 7306 30 18, 7306 30 80, 7306 40 20, 7306 40 80, 7306 50 21, 7306 50 29, 7306 50 80, 7306 69 10, 7306 69 90, 7306 90 00

250,757

50%

Non-alloy and other alloy cold finished bars

7215 10 00, 7215 50 11, 7215 50 19, 7215 50 80, 7228 10 90, 7228 20 99, 7228 50 20, 7228 50 40, 7228 50 61, 7228 50 69, 7228 50 80

97,315

50%

Non Alloy Wire

7217 10 10, 7217 10 31, 7217 10 39, 7217 10 50, 7217 10 90, 7217 20 10, 7217 20 30, 7217 20 50, 7217 20 90, 7217 30 41, 7217 30 49, 7217 30 50, 7217 30 90, 7217 90 20, 7217 90 50, 7217 90 90

317,886

50%