Community & UK Steel Welcome UK Tariff Rate Quotas
The UK steel sector breathed a sigh of relief this morning as the European Commission has, at last, published proposed Tariff Rate Quota allocations for
the UK steel exports into the EU from 1 January 2021. Without this UK specific allocation of steel export tariff-free quota, the UK sector could have faced an £80m bill, from EU Steel Safeguard tariffs in the first half of next year. Whilst the sector now carefully considers the detail of the UK allocation proposals, it is clear that from today, the UK steel companies can give full reassurance to their European customers that steel delivered to them from 1 January will not automatically be subject to a whopping 25% tariff. Customer reassurance and certainty in these uncertain times is more important than ever. So this announcement today is extremely welcome.
UK Steel Director General, Gareth Stace, said “At last we have good news for the UK steel sector. Receiving the formal notice from the European Commission of Tariff Rate Quotas helps all steel companies in the UK to give their European customers a greater level of certainty that deals done today, for delivery in 2021, will not automatically be subjected to a crippling 25% tariff, resulting out of the EU Steel Safeguards, which will remain in place until July 2021. The UK sector has worked closely with the Government on getting this result over the line, and I want to thank both ministers and civil servants in both the Department for International Trade and the Business Department for their support. Their help and our work has resulted in delivery of this crucial proposal from the European Commission, meaning steel companies can provide the assure their customers have asked for and therefore continue to deliver UK produced steel across the channel, our biggest export market, after 1 January 2021.”
Roy Rickhuss, General Secretary of Community, said “This is extremely welcome news as there’s no doubt securing these quotas is vital to safeguard jobs across our steel industry. For months we have been campaigning alongside our partners in the sector, in Westminster and in Europe to ensure our exports to the EU did not become subject to a disastrous 25% tariff. Delivering this outcome has been a collective effort and I’d like to pay tribute to those in the Business Department who understand the importance of our industry and have worked tirelessly to bring this about. Of course there is more work to do because these quotas are necessary but not sufficient to secure our future. As a top priority steelworkers expect Government to deliver on promises that UK steel producers will be front of the queue for taxpayer-funded contracts as we move forward and rebuild our economy.”
On 31 January 2019, the European Commission imposed definitive safeguard measures on certain steel products. Pursuant to the Withdrawal Agreement between the European Union and the United Kingdom, as of 1 January 2021, the UK will no longer be part of the EU customs territory. Therefore, as of that date the territorial scope where safeguard measures are applicable will change. In view of this change, the Commission deems it appropriate to adapt the volume of Tariff Rate Quotas accordingly as well as the list of developing countries subject to the current measures. The scope of this TRQ adaptation for the remainder of the period of validity of the current safeguard measures consists in recalculating the volume of the TRQs, having regard to the volume of imports into the Union (EU-27) considering the UK as if it were a third country in the reference period (2015-2017).