The Government’s decision to disregard key elements of the
Trade Remedies Authority’s recommendations on UK steel safeguarding measures has created a ‘tsunami of issues’ for the downward supply chain. Delays at ports, the suspension of imports, and subsequent disruptions in deliveries are reverberating throughout domestic industry according to the
Confederation of British Metalforming (CBM).
Representing more than 200 members from the metals sectors, the organisation believes that the Secretary of State’s decision to apply significantly lower caps on residual safeguarding quotas at short notice is damaging UK plc and could result in significant job losses. The TRA provides steel safeguarding recommendations to protect the UK steel industry from unfair competition, with quotas set on the amount of steel that can be imported from overseas.
The recent changes have seen a reduction from 70% volumes to just 15% for some countries and, critically, this has been implemented from 1 July instead of October as initially recommended by the Trade Remedies Authority. The CBM and its members are now calling on the Government to urgently address these problems by reconsidering the implementation of the steel safeguards and by working collaboratively with industry stakeholders to find sustainable solutions that balance the needs of domestic steel producers with the interests of businesses in downstream manufacturing.
Delays and disruptionsCBM president Stephen Morley said: “We are witnessing first-hand the detrimental effects of steel safeguards on the operations of our members and that of the wider supply chain. The delays and disruptions caused by these measures are not only affecting our companies but are also putting a strain on industry as a whole. We are already seeing delivery delays of at least four weeks, with some ships being redirected to alternative ports.”
He continued: “The suspension of imports and subsequent delays in deliveries are creating a domino effect, with businesses facing additional costs, logistical challenges, and uncertainties about the future of their operations. All the Secretary of State has done with his decision is exacerbated the existing pressures on firms already grappling with the challenges of the current economic climate.”
The implementation of steel safeguards was intended to protect the domestic steel industry — however, the unintended consequences are now becoming apparent. Overriding Trade Remedy Authority recommendations has resulted in significant delays in customs clearance, suspension of imports, and a bottleneck at ports that is hindering the smooth flow of critical goods.
Mr Morley concluded: “The consequences of this decision were foreseeable, and exactly why the TRA recommended implementation in October — not July. As the disruptions continue to unfold, the CBM remains committed to navigating these challenges, supporting its members, and advocating for a more balanced and effective approach to safeguarding all of the steel industry and not just the producers.”