The UK government has proposed to extend the safeguard measures on five categories of steel for a further two years from July 1, 2022 until June 30, 2024, in light of the findings of the Trade Remedies Authority’s (TRA) and the conclusions of the Secretary of State for International Trade.
The product categories are tin mill products, non-alloy and other alloy quarto plates, merchant bars and light sections, non-alloy and other alloy wire rod, angles, shapes and sections of iron or non-alloy steel.
The TRA found that imports would likely increase significantly for all product groups if safeguard measures including tariff-rate quotas were revoked, as SteelOrbis previously reported. The Secretary of State for International Trade has concluded that removal of the steel safeguard measure would likely result in an increase in imports and therefore would result in serious injury or the threat of serious injury to UK steel producers.
Last year, the UK retained safeguard measures on 10 product categories of steel for three years, while the safeguards were extended for one year on the five given product categories.
“We are aware this extension was not straightforward. Establishing a trade remedies framework for the first time in 50 years was always going to be challenging and the nature of these measures virtually guarantees some opposition from one quarter or another. However, this is not sufficient reason to shy away from using the trade tools now at our disposal and the government has done the right thing in ensuring the UK's steelmakers are not left to the mercy of a global steel market that suffers from overcapacity and state-induced distortions,” Gareth Stace, director general of the UK Steel trade association, commented.