UK Steel’s recommendations to strengthen existing steel safeguard measures have been taken forward today after the Secretary of State stepped in at a critical time for industry.
UK Steel says that the Secretary of State, Jonathan Reynolds, has again shown that he is on the side of British industry in following the organisation’s recommendations to tighten the existing steel safeguards. This will be crucial to diminishing the injury that will be caused to domestic steelmakers by steel being redirected away from the US market in light of President Trump’s steel import tariffs.
In a letter to Nick Baird,
Trade Remedies Authority chair, Mr Reynolds noted that in his intended decision, the Government has accepted UK Steel’s arguments to limit the liberalisation of the existing steel import quotas to 0.1%, down from 3.0% previously, in line with the measures taken by the European Union (EU). The Government has also accepted UK Steel’s argument to implement a cap on residual quotas, preventing individual countries from dominating the quota and harming domestic producers.
The Business Secretary also intends to implement the Trade Remedies Authority’s recommendations to prevent unused quarterly quotas from being rolled over to the following quarter and prevent countries with a specific quota from accessing residual quotas in the final quarter, in line with UK Steel’s requests.
Tremendous outcomeUK Steel Director-General, Gareth Stace, said: “This is a tremendous outcome and a demonstration of the Secretary of State’s commitment to our industry. The measures will reduce the pressure of steel diversion from the USA and the EU and prevent countries that flood international markets with unsustainably cheap steel from swamping the UK and driving our steel manufacturers out of business. We now need to back the tightened safeguards up with a comprehensive new trade defence mechanism.
“This will help to develop the positive business environment our country craves and encourage private investors to enter the sector, ensuring we not only survive but thrive. The new mechanism, to replace the safeguards before they expire, should be introduced in January.”
He concluded: “The forthcoming Trade Strategy has the potential to deliver new legislation that will equip Government with the tools it needs to defend our companies from the subsidised steel that is currently flooding steel markets at unsustainable price levels. The Government has made the right decision today, in response to a tough trading environment where subsidised imports undermine domestic steel production.”