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
INTA-PR-779727
Committee on International Trade · Rapporteur: Karin Karlsbro
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This draft report sets out Parliament's amended version of the proposed regulation on steel overcapacity, adjusting quotas, duties, and evidence rules.¶¶ It raises the out-of-quota duty to 50%, allows quarterly quota carry-over, and requires proof of 'melt and pour' origin.¶¶¶ It bans imports of steel melted and poured in Russia or Belarus, exempts Ukraine, and mandates annual reviews and reports.¶¶¶
Committee position. The rapporteur proposes amendments to the Commission's proposal, including a higher duty, quota carry-over, melt-and-pour evidence, bans on Russian/Belarusian steel, and more frequent reviews.¶¶¶
Key points
- Sets the out-of-quota tariff at a 50% duty, in addition to other duties, to minimize trade diversion and allow increased production capacity.¶
- Requires implementation in full compliance with WTO obligations, aiming to restore conditions for more open and rules-based trade.¶¶
- Permits carry-over of unused quarterly tariff quota volumes to the next quarter to ensure continuity and avoid supply disruptions.¶¶
- Requires importers to provide evidence of the country of 'melt and pour', with guidelines to limit administrative burden and facilitate SME compliance.¶¶¶
- Prohibits access to the Union market for products melted and poured in Russia or Belarus, with automatic border prohibition.¶¶
- Fully exempts imports originating in Ukraine for as long as it faces an exceptional and immediate security situation.¶¶
- Requires the Commission to assess the product scope within one year of entry into force, and annually thereafter, considering adding or removing steel products.¶¶
- Mandates an annual public report on implementation, including quota use and imports under the 50% duty.¶¶
- Requires evaluation of the regulation's effectiveness by the end of the second year from entry into force, and every two years thereafter, covering overcapacity, trade diversion, and industry performance.¶¶
Who is affected
- Steel importers must provide evidence of 'melt and pour' origin, with guidelines to ease compliance for SMEs.¶¶¶
- Importers of steel from Russia or Belarus face an automatic ban on their products.¶¶
- Ukrainian steel exporters are exempt from the regulation's measures.¶¶
- EU steel producers benefit from higher duties on out-of-quota imports and regular reviews of the measure.¶¶
Figures and deadlines
Legal basis: Article 294(2) and Article 207(2) of the Treaty on the Functioning of the European Union¶