AB Steel Industry Announces Protection Plan

European Union's Support Plan for the Steel Sector

The European Commission has announced a new protection plan aimed at safeguarding the steel sector from "unfair competition" caused by global overcapacity.

Overview of the Protection Plan

This plan includes various measures to ensure the long-term sustainability of the EU's strategic steel sector.

Import Limitations and Tax Increases

The duty-free import quantity for steel has been set at 18.3 million tons, representing a 47% reduction compared to the 2024 steel quotas. Additionally, the non-quota tax rate will be doubled to 50 percent.

Market Monitoring and Regulations

The EU has decided to impose smelting and casting obligations to enable more effective monitoring of steel markets. These measures aim to prevent circumvention of the rules.

Attention to Exceptions

Steel exports from Norway, Iceland, and Liechtenstein will not be subject to these new regulations, while special quota allocations will be made for countries with exceptional security situations, such as Ukraine.

Approval Process

The aforementioned measures will come into effect following the approval of the European Parliament (EP) and member states. Steel holds a critical position in many strategic sectors, including defense, making it a vital product for the EU economy.

The EU's Role in Steel Production

The EU is the third-largest steel producer in the world, while recently facing challenges in competing with cheap imported steel products. The steel sector provides direct employment for 300,000 people in more than 20 EU countries and indirect employment for 2.5 million people.

The sector frequently requests protective measures from the EU.