Sittings · Document
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 · Rapporteur: Karin Karlsbro
PR_COD_1amCom
Symbols for procedures
* Consultation procedure
*** Consent procedure
***I Ordinary legislative procedure (first reading)
***II Ordinary legislative procedure (second reading)
***III Ordinary legislative procedure (third reading)
(The type of procedure depends on the legal basis proposed by the draft act.)
Amendments to a draft act
Amendments by Parliament set out in two columns
Deletions are indicated in bold italics in the left-hand column. Replacements are indicated in bold italics in both columns. New text is indicated in bold italics in the right-hand column.
The first and second lines of the header of each amendment identify the relevant part of the draft act under consideration. If an amendment pertains to an existing act that the draft act is seeking to amend, the amendment heading includes a third line identifying the existing act and a fourth line identifying the provision in that act that Parliament wishes to amend.
Amendments by Parliament in the form of a consolidated text
New text is highlighted in bold italics. Deletions are indicated using either the ▌symbol or strikeout. Replacements are indicated by highlighting the new text in bold italics and by deleting or striking out the text that has been replaced.
By way of exception, purely technical changes made by the drafting departments in preparing the final text are not highlighted.
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
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))
(Ordinary legislative procedure: first reading)
– having regard to the Commission proposal to Parliament and the Council (COM(2025)0726),
– having regard to Article 294(2) and Article 207(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C100245/2025),
– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,
– having regard to Rules 60 of its Rules of Procedure,
– having regard to the opinion of the Committee on Industry, Research and Energy,
– having regard to the report of the Committee on International Trade (A100000/2025),
1. Adopts its position at first reading hereinafter set out;
2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;
3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Amendment 1
Proposal for a regulation
Recital 15
Text proposed by the Commission
Amendment
(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 set the level of out-of-quota tariff to a 50% duty to minimise the risk of trade diversion. This duty would come in addition to other duties applying to the product categories covered by this Regulation.
(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 set the level of out-of-quota tariff to a 50% duty to minimise the risk of trade diversion and to allow an increase in production capacity. This duty would come in addition to other duties applying to the product categories covered by this Regulation.
Or. en
Amendment 2
Proposal for a regulation
Recital 16 a (new)
Text proposed by the Commission
Amendment
(16a) This Regulation should be implemented in full compliance with the Union’s obligations under the WTO. The measure aims to address trade distortions caused by global excess capacity and should be understood as an instrument for restoring conditions for more open and rules-based trade in the future. The Union’s long-term objective is for that instrument to facilitate greater liberalisation once market conditions normalise.
Or. en
Amendment 3
Proposal for a regulation
Recital 20 a (new)
Text proposed by the Commission
Amendment
(20a) To ensure continuity and to avoid supply disruptions, carry-over of unused quarterly tariff quota volumes to the following quarter should be permitted. This would provide the necessary operational flexibility while maintaining the overall effectiveness of the measure.
Or. en
Amendment 4
Proposal for a regulation
Recital 21
Text proposed by the Commission
Amendment
(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”. The country of “melt and pour” refers to the original location in which raw steel and iron is initially produced in liquid form within a steelmaking or iron-making furnace and subsequently cast into its primary solid state. This 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. Requesting evidence of the country of “melt and pour” will avoid that steel produced in certain countries contributing to global overcapacity unduly enters the Union’s market following further transformation in other countries and will increase transparency in the domestic supply chain for steel imports.
(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”. The country of “melt and pour” refers to the original location in which raw steel and iron is initially produced in liquid form within a steelmaking or iron-making furnace and subsequently cast into its primary solid state. This 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. Requesting evidence of the country of “melt and pour” will avoid that steel produced in certain countries contributing to global overcapacity unduly enters the Union’s market following further transformation in other countries and will increase transparency in the domestic supply chain for steel imports. That requesting of evidence should be done in such a way that limits administrative burden to the greatest extent possible, and that facilitates the compliance of small and medium-sized enterprises (SMEs).
Or. en
Amendment 5
Proposal for a regulation
Recital 21 a (new)
Text proposed by the Commission
Amendment
(21a) Imports of products for which the steel was melted and poured in the Russian Federation or in Belarus should not be granted access to the Union market and should not benefit from any tariff quota. Accordingly, all such products should be subject to an automatic prohibition at the external borders of the Union.
Or. en
Amendment 6
Proposal for a regulation
Recital 25 a (new)
Text proposed by the Commission
Amendment
(25a) In line with the Union’s commitment to support Ukraine’s economy during the ongoing war of aggression and with Regulation (EU) 2025/1153 of the European Parliament and of the Council1a, imports originating in Ukraine should be fully exempted for as long as that country is facing an exceptional and immediate security situation.
_________________
1a Regulation (EU) 2025/1153 of the European Parliament and of the Council of 5 June 2025 suspending certain provisions of Regulation (EU) 2015/478 as regards imports of Ukrainian products into the Union (OJ L, 2025/1153, 5.6.2025, ELI: http://data.europa.eu/eli/reg/2025/1153/oj).
Or. en
Amendment 7
Proposal for a regulation
Recital 26
Text proposed by the Commission
Amendment
(26) The Commission should assess at the latest within 2 years following the adoption of this Regulation the necessity to adjust the scope of products covered by this Regulation and if deemed necessary, it should consider making a legislative proposal to add additional steel products, including products that are made of or contain a significant amount of steel.
(26) The Commission should assess at the latest within one year from the date of entry into force of this Regulation the necessity to adjust the scope of products covered by this Regulation and if deemed necessary, it should consider making a legislative proposal to add or remove steel products, including products that are made of or contain a significant amount of steel. In order to ensure the effectiveness of this Regulation, it is essential for the assessment to evaluate carefully whether the problems this Regulation seeks to address are being solved and not inadvertently displaced further along the value chain.
Or. en
Amendment 8
Proposal for a regulation
Recital 26 a (new)
Text proposed by the Commission
Amendment
(26a) The Commission should draw up an annual report on the implementation of this Regulation and submit it to the European Parliament and to the Council. That annual report should, inter alia, contain information on the use and evolution of quotas and the category and amount of import that fall under the 50 % duty. The annual report should be made public.
Or. en
Amendment 9
Proposal for a regulation
Recital 27
Text proposed by the Commission
Amendment
(27) Before 1 July 2031, and every five 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, as well as its effects on the steel market. The Commission should also review the situation of third country trade restrictive measures on steel and the implications and effects they may have, or be likely to have, in terms of risk of trade diversion into the Union market. In addition, the Commission should also analyse the situation concerning the existence of non-market policies and practices in third countries and their impact on the Union steel market. The Commission should also assess the evolution of the economic performance of the Union steel industry as well as the evolution of its decarbonisation projects,
(27) Before the end of the second year from the date of entry into force of this Regulation, and every two 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, as well as its effects on the steel market and the downstream value chains. The Commission should also review the situation of third country trade restrictive measures on steel and the implications and effects they may have, or be likely to have, in terms of risk of trade diversion into the Union market. In addition, the Commission should also analyse the situation concerning the existence of non-market policies and practices in third countries and their impact on the Union steel market. The Commission should also assess the evolution of the economic performance of the Union steel industry, including price levels and capacity uptake, as well as the evolution of its decarbonisation projects,
Or. en
Amendment 10
Proposal for a regulation
Article 1 bis – paragraph 1
Text proposed by the Commission
Amendment
Article 1 shall not apply to products originating in Norway, Iceland or Liechtenstein.
Article 1 shall not apply to products originating in Norway, Iceland, Liechtenstein, and shall not apply to a candidate country for as long as that country is facing an exceptional and immediate security situation.
Or. en
Amendment 11
Proposal for a regulation
Article 2 – paragraph 4
Text proposed by the Commission
Amendment
4. The unused tariff quota volumes in one quarter shall not be carried over to the next quarter.
4. The unused tariff quota volumes in one quarter shall be carried over to the next quarter.
Or. en
Amendment 12
Proposal for a regulation
Article 2 – paragraph 4 a (new)
Text proposed by the Commission
Amendment
4a. Measures under this Regulation shall be applied in a manner consistent with WTO rules and shall not restrict trade beyond what is strictly necessary to address the negative effects of global overcapacity as a result of unfair market conditions.
Or. en
Amendment 13
Proposal for a regulation
Article 3 – paragraph 2
Text proposed by the Commission
Amendment
2. At the moment of importation, importers shall provide appropriate evidence, such as a mill certificate which will prove the country of “melt and pour” of the steel used in the production of the product.
2. At the moment of importation, importers shall provide appropriate evidence to prove the country of “melt and pour” of the steel used in the production of the product.
Or. en
Amendment 14
Proposal for a regulation
Article 3 – paragraph 2 a (new)
Text proposed by the Commission
Amendment
2a. The following documents, inter alia, shall constitute “appropriate evidence” for the purpose of this Article:
(a) mill certificates;
(b) invoices;
(c) delivery notes;
(d) quality certificates;
(e) long-term declarations from suppliers;
(f) cost accounting and production documents;
(g) customs documents from the exporting country;
(h) commercial correspondence;
(i) production descriptions; or
(j) declarations made by the manufacturer if they relate directly to the consignment in question.
Or. en
Amendment 15
Proposal for a regulation
Article 3 – paragraph 2 b (new)
Text proposed by the Commission
Amendment
2b. The Commission may adopt guidelines on how to provide the appropriate evidence with the aim of limiting administrative burden and to facilitate the compliance of SMEs.
Or. en
Amendment 16
Proposal for a regulation
Article 3 – paragraph 2 c (new)
Text proposed by the Commission
Amendment
2c. Imports of products for which the steel was melted and poured in the Russian Federation or in Belarus shall not be granted access to the Union market and shall not benefit from any tariff quota. All such products shall be subject to an automatic prohibition at the external borders of the Union.
Or. en
Amendment 17
Proposal for a regulation
Article 9 – paragraph 1
Text proposed by the Commission
Amendment
1. By [Publications Office: insert the date 2 years after the adoption of this draft Regulation] the Commission shall assess the necessity of amending the product scope of this Regulation, and may submit a legislative proposal to amend this Regulation. This assessment shall be carried out periodically every two years after the first review.
1. By ... [one year from the date of entry into force of this Regulation] the Commission shall assess the necessity of amending the product scope of this Regulation, and may submit a legislative proposal to amend this Regulation. This assessment shall be carried out annually.
Or. en
Amendment 18
Proposal for a regulation
Article 9 – paragraph 1 a (new)
Text proposed by the Commission
Amendment
1a. The Commission shall provide an annual report on the implementation of this Regulation to the European Parliament and to the Council. That report shall be made public.
Or. en
Amendment 19
Proposal for a regulation
Article 9 – paragraph 2
Text proposed by the Commission
Amendment
2. Before 1 July 2031, and every five 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 and the situation of the Union steel making industry. Based on that evaluation, the Commission may submit a legislative proposal to amend or repeal this Regulation.
2. Before ... [two years from the date entry into force of this Regulation], and every two 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 and the situation of the Union steel making industry, including price levels and capacity uptake, as well as the downstream value chains. Based on that evaluation, the Commission may submit a legislative proposal to amend or repeal this Regulation.
Or. en
EXPLANATORY STATEMENT
The EU needs a strong, competitive and decarbonised steel sector as this sector is vital for the EU's competitiveness, economic security and strategic autonomy. The steel sector is also essential for the EU’s decarbonisation goals, not only in reducing its own carbon footprint but it also constitutes an important input in the green tech sector. Steel is furthermore key for strengthening Europe’s defence industrial base.
As the third largest steelmaking industry in the world, and with steel production in more than 20 Member States, the EU steel producers employ 300.000 people directly and count indirectly for 2,5 million jobs. It carries an important role in many regional economies.
However, the trade related challenges the EU steel sector is facing are only increasing. The already distorting global overcapacity, that generates cheap steel surplus and high import pressure on the EU market, further aggravated by diverted steel from protective measures by several of EU’s trading partners, is expected to continue increasing in the coming years. The EU steel production has dramatically decreased in the last decades, leading to sites closing down and the gap between production and capacity levels increasing. The European steel sector cannot stay competitive if decreasing profit levels do not allow for necessary investments in decarbonisation.
As the already prolonged provisional safeguard measures put in place in July 2018 are set to expire in June 2026, it is essential to establish a robust and rules-based mechanism to allow the sector to recover, while aiming for a strengthened foundation for more free trade. The global steel situation in general and the state of the European steel sector in particular make it clear that a strong, effective and targeted measure is necessary. In this context, the Rapporteur welcomes the draft legislative proposal, which was announced in the March 2025 Steel and Metal Action Plan (SMAP). The Rapporteur also fully concurs with the assessment made by President von der Leyen in her State of the Union address in September 2025 regarding the strategic necessity of shielding EU industries from unfair trading practices and preserving a global level playing field.
With regard to the substance of the proposal, the Rapporteur welcomes that it is a step in the right direction from the existing safeguard measure. The Single Market should remain open for rules-based trade and the Rapporteur therefore strongly supports that tariff free quotas continue to allow for a market based approach while the overcapacity and the subsequent diverted trade be handled with a clear duty level beyond the quotas. For the calculation of the tariff-free quota, the Rapporteur finds that using 2013 as the reference year - before overcapacity severely impacted Europe - represents a balanced and WTO-consistent benchmark. To allow flexibility in the system the carryover of unused quarterly quotas should be enabled. The Rapporteur stresses the importance of the 'Melt and Pour' requirement which will enhance product traceability, ensure the genuine origin of steel inputs, and reduce the risk of circumvention through transhipment or minimal processing.
The proposed steel measure needs regular evaluation and allow for adjustment in order to ensure that it efficiently contributes to increased production in highly competitive companies and goes hand in hand with efforts to ringfence export markets and cooperation in fighting global overcapacity together with likeminded trading partners. It cannot be a tool to hold uncompetitive industry alive while pushing the problem further down the value chain. A competitive steel production also, importantly, ensures that the EU does not build up an unhealthy dependency. The Rapporteur looks favourably to regular assessments of the scope and believes they could occur on a more frequent basis. An annual reporting is in line with this type of trade instruments and allows the co-legislators to understand how the implementation of the different dimensions of the instrument evolves.
In a time when the multilateral trading system is under sustained pressure, the Rapporteur particularly welcomes that the proposed regulation has been designed to remain fully compliant with WTO obligations. The Rapporteur will follow with close attention the negotiations to be conducted with affected trading partners, in particular those with whom the Union has concluded—or is in the process of concluding—Free Trade Agreements, in order to ensure legal clarity, predictability, and the continued integrity of the EU’s trade defence architecture.
The Rapporteur also believes that the specific situation of EU candidate country Ukraine should be duly taken into account. Consequently, in line with the Union’s commitment to support Ukraine’s economy during the ongoing war of aggression as well as in consistency with the political agreement on Regulation 2025/1153 (COD), a non-application of Article 1 should be confirmed. Similarly, the Regulation should address any potential loopholes that could permit the direct or indirect importation of goods originating from Russia, further financing the continued Russian hostile activities and undermining of European peace and stability.
While allowing the co-legislators to fulfil their work, the magnitude of challenges faced by the steel sector and the urgency of providing legal and economic certainty, the Rapporteur believes that the democratic process should advance without delay so that the regulation can enter into force on time.
ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that she received input from the following entities or persons in the preparation of the draft report, prior to the adoption thereof in committee:
Entity and/or person
Thyssenkrupp
Eurofer
Jernkontoret
European Steel Processors Association
Metal Packaging Europe External Affairs ASBL
Orgalim – Europe's Technology Industries
Kommerskollegium - National Board of Trade Sweden
Permanent representation of Sweden to the EU
Permanent representation of Finland to the EU
Mission of Switzerland to the EU
The list above is drawn up under the exclusive responsibility of the rapporteur.
Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that she has submitted to the natural persons concerned the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.