European steel industry strongly demands EU to amend import control measures

According to Bloomberg, the EU steel industry slammed the EU's trade authority for failing to slash import quotas in the planned adjustment of import quotas, saying EU steel producers were at risk of bankruptcy.

The European steel association and EU based chief executives of manufacturers have targeted the EU's proposed reform of import controls, which were implemented two years ago. These restrictions, known as "safeguards", are designed to prevent the US from imposing 25% of the disputed tariffs on foreign steel, leading to a shift in global steel exports to the EU market and a large influx of steel into the EU market.

The European Commission announced on May 29 that it would make a comprehensive adjustment to quotas in view of the economic downturn caused by the coronavirus, and stop the quota cuts demanded by EU producers. The changes, which will take effect on July 1, are aimed at preventing market distortions as the EU economy recovers from the covid-19 epidemic.

"Import quotas should be significantly reduced," the industry association and chief executives said in a joint statement released in Brussels on Monday. "The survival of the European steel industry is at greater risk because the European Commission's Steel Safeguard review proposal does not take into account the sharp decline in demand after the outbreak."