“For the last few weeks the UK steel sector has held on to the hope that an exemption could be secured before the 23rd March 2018 deadline and we have finally been given cause for optimism. The announcement that the EU will be given a temporary exemption will be greeted with an enormous sigh of relief from the sector and it now provides us with the breathing room to find a more permanent solution. Every effort must now be made by the UK and EU authorities to ensure that this happens swiftly.
“The alternative would be a severe curtailment of our ability to export to the US. With some 350,000 tonnes of steel sold to the US last year – 7% of our total exports – it is clear any tariffs would ultimately hit the sector hard. There is surely no reasonable justification for allowing this to happen.
“However, we must of course remember that an EU exemption will do nothing to guard against the indirect impacts of these measures,” he added. “Indeed, by some measures it may exacerbate the situation. Tariffs are set to divert millions of tonnes of steel away from the US towards other open markets. At 40 million tonnes a year, the EU is by far the largest import market in the world and will be the obvious target for major steel exporters to the US such as Turkey and Russia. Imports to the EU grew 65% between 2013 and 2017, and the first two months of this year alone saw a further 12% increase.
“The top priority here must be for the EU Commission to swiftly introduce safeguard measures to protect against further expected import surges. Crucially, these measures must cover the same product range as the US tariffs. It is vital we do not leave large segments of the sector exposed and scupper the sector’s fragile and nascent recovery from the crisis of recent years.
“Ultimately, we know that the US tariffs are nothing more than a short-term solution and they will do little to tackle the route course of the problem. Steel industries and governments around the world must now renew their efforts and resolve to tackle the problems of global overcapacity collectively and cooperatively.”
UK Steel www.eef.org.uk/uksteel
