BRUSSELS — United Kingdom Business Secretary Peter Kyle will meet European Union Trade Commissioner Maroš Šefčovič in Brussels on Friday to discuss steel import quotas. The meeting occurs ahead of the July 1 implementation of a new U.K. domestic steel quota and tariff regime.
The United Kingdom previously participated in the European Union steel safeguards regime. On July 1, the United Kingdom will implement a new domestic steel quota and tariff regime following Brexit. The EU is also planning to reduce overall tariff-free steel imports from non-EU countries by 47 percent relative to 2024 levels, beginning on July 1. Both the EU and the U.K. are introducing steel safeguard measures to address competition from Chinese producers.
The EU plans to reduce foreign steel imports by 50 percent, while the U.K. plans to reduce foreign steel imports by 60 percent. The European Steel Association submitted a letter to Maroš Šefčovič regarding the U.K.'s steel quota proposals. The association claimed that the proposed U.K. quotas would allocate 9 percent of previous hot coil import levels to the European Union. Additionally, the letter stated 4 percent of former tin mill import levels would be allocated. It also noted 3 percent of prior merchant bars import levels.
Axel Eggert, director general of the European Steel Association, stated that the proposed U.K. quotas would reduce EU exports of organic coated products by 80 percent, rebar steel by 45 percent, and steel rails by 38 percent. Eggert characterized the proposed U.K. quota reductions as a negotiating position ahead of a settlement agreement. Discussing the trade relationship, he said, "A zero reduction in exports from the U.K. is not possible, the U.K. will have a lower quota. The U.K. should definitely get preferential treatment over rivals." Eggert added, "We are so interconnected."