The decision of the European Commission to extend the EU safeguard measures on steel imports until June 30, 2024, is "not very responsible" and "lacks common sense" according to Assofermet Acciai, part of the Italian association Assofermet, which represents domestic steel distributors. Assofermet Acciai also criticized the choice to reduce the percentage of the annual relaxation of the tariff quotas from five percent to three percent.
The decision to extend the safeguard according to Assofermet Acciai is unjustified "in light of the current market trend of the EU steel industry, which is profoundly different from that of early 2020." Furthermore, "it comes only 19 days before the expiry of the current measures, thus confirming a total temporal misalignment with respect to the long lead times of EU producers, which in several cases even reach five to six months. It should be noted that, already in March 2021, many importers began to conclude supply agreements with non-EU steel mills, for arrival in the second half of 202."
Assofermet Acciai said it believes that the provision will have a dramatic impact on the entire EU economic system, undermining the post-Covid-19 recovery. As on other occasions in recent months, the association complained that the European Commission "persists in protecting the interests of the steel producers sector alone, forgetting the users of steel and final consumers."
The notice sent to the WTO states that the EU Commission, in order to reach the decision to extend the measures, has analyzed the data for the period 2018-20. According to Assofermet Acciai, however, this assessment does not consider "the forecast for the years 2021 and 2022, when we will reasonably see a significant increase in consumption."
The association added that the rise in prices is "a direct consequence of the speculative attitude" of steel producers who in "recent years have insistently requested the imposition of anachronistic and counterproductive protection measures."
In conclusion, Assofermet Acciai argued that the protectionist barriers must be completely removed and that only thanks to greater flows of steel from third countries will it be possible to satisfy the growing demand of the EU market and guarantee the stability of the system.