Callanish notes that several EU member states have called for broader coverage of steel-containing products and special attention to Ukraine as part of the new steel trade protection regime, as legislation moves towards formal adoption by the Council of the European Union.
Spain argues that the scale of the new measure remains insufficient to protect European industry, warning that steel producers in third countries can circumvent the restrictions by exporting products with very high steel content. The country urged the European Commission to give priority to the planned revision of the regulation and ensure adequate coverage of the processing industries.
Estonia, Latvia and Lithuania expressed concern that the regulations did not sufficiently reflect the exceptional circumstances of wartime in Ukraine. The three countries declare that Ukraine should have remained exempt from this measure in accordance with the current framework of protective measures for steel, and urge that its situation be fully taken into account when allocating quotas for a particular country. They note that Ukraine's steel sector remains the most important source of export earnings, despite the destruction, damage and occupation of production facilities caused by the war.
In a separate joint statement, Sweden, Finland, Denmark, Estonia, Latvia and Lithuania support action against global warming. Steelmaking capacity is redundant, but the need to balance the protection of steel producers in the EU with the competitiveness of processing industries is emphasized. The Group emphasizes the importance of taking into account the situation in Ukraine when making future decisions on the implementation and allocation of quotas.
The comments were presented in the form of statements to be included in the minutes of the council meeting before the official adoption of the regulation aimed at eliminating the negative trade-related effects of global overcapacity on the EU steel market. Legislation that will replace the current steel protection regime from July 1 has been approved. The project was approved by the European Parliament on May 19 and is expected to be formally adopted by the Council in the near future. Estonia voted against the compromise, while Portugal abstained.
Author: Elina Virchenko
Kallanish.com