#Steel: Europe introduces new prior-surveillance system for steel imports

The European Commission established today (29 April) a prior-surveillance system for import of steel products into the EU that will serve to anticipate short-term market developments and take the necessary actions, if and when needed. This mechanism is part of a series of measures aiming to support the EU steel sector presented on 16 March in the Commission's Communication "Steel: Preserving sustainable jobs and growth in Europe".

Based on the Regulation adopted today, imports of steel products into the EU will now require an import license. This decision also gives a clear signal to companies, including in exporting countries, that the Commission actively monitors market developments and is willing to take the necessary steps if justified. Prior-surveillance measures are foreseen in the EU's safeguard instrument and can be introduced when import trends threaten to cause injury to Union producers. The product scope of the surveillance was decided after consultation with the EU industry and reflects its recent sensitivities.

In the interest of the EU steel industry and employment in the sector and also for legal certainty, this system will be in place for four years. To allow a smooth transition, an additional 21 working days were granted from the entry into force of the regulation, during which imports can still enter into the EU without licence.

The steel industry in Europe is world-leading in certain steel product segments, represents 1.3% of EU GDP and provided around 328,000 jobs in 2015. Despite the potential of the European steel sector and the significant efforts made to innovate and modernize, its competitive position on the global steel market has deteriorated in recent years. Excess production of steel in third countries such as China has increased exports, depressed prices, and given rise to an unprecedented wave of unfair trading practices.

“Excess steel-making capacity is one of the greatest challenges of our time,” said EUROFER President Van Poelvoorde. “Global excess capacity is presently in the order of 700 million tonnes; about 400 million of this is in China. The country’s leaders must face the reality that their excess capacity is damaging the global industry’s prospects and is triggering the rollout of tit-for-tat anti-dumping measures across the world.”

“European steel is globally competitive when faced with a fair market. In the presently distorted market, we call on European policy makers to do more to quickly and effectively defend their strategic steel industry,” emphasized Van Poelvoorde. “However, we also remind our Chinese counterparts: accountable as they are for the world’s greatest and fastest widening gap between domestic demand and supply, that it is their responsibility to commit to meaningful net capacity reductions and ensure that state intervention in their steel sector is put to an end.”

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