The United Kingdom’s Trade Remedies Authority (TRA) has proposed introducing tariff-rate quota (TRQ) caps to limit the dominance of individual countries in steel imports. This initiative aims to restore balance and protect the domestic steel industry.
Proposed TRQ Caps
The TRA recommends imposing 40% caps on specific steel categories, including Category 4 (metallic coated sheet), Category 7 (non-alloy and other alloy quarto plates), and Category 13 (rebar). These caps address concerns about the over-reliance on imports from a few countries.
The TRA also proposes removing the “carry-over” facility, which previously allowed unused quotas to roll over into the next quarter. Furthermore, countries with country-specific quotas would no longer access residual quotas in the final quarter of the year. The TRA expects these changes to take effect on July 1, with country-specific caps starting on October 1, 2025.
Industry Reaction and Adjustments
The TRA will allow importers time to adjust to these new regulations. The recommendations are open for public feedback until May 26. Steel buyers and producers will have the opportunity to comment on the proposals before final decisions are made.
Research from MEPS’s European Steel Review reveals that UK steel buyers have paused procurement due to uncertainty around the country’s import safeguard measures. Traders want to maintain access to overseas supply, while domestic producers seek stronger protections.
Jon Carruthers-Green, an analyst from MEPS International, emphasized that this is the last opportunity for stakeholders to respond to the TRA’s recommendations before submitting them for UK government approval.
Steel Demand and Quota Exhaustion
During the TRA’s investigation period from January 1 to December 31, 2024, steel import quotas were exhausted in several categories. The rebar quota was exhausted in every quarter, and categories 4 and 7 saw significant usage from specific countries. In Category 4, Vietnam accounted for 62% of the residual quota, while South Korea dominated Category 7 with 80%. Algeria contributed 86% of imports in the rebar category, and Egypt accounted for 14%.
UK Steel, the country’s steel industry association, reported a 16% decline in steel demand from 2018 to 2023. The TRA’s investigation incorporates these concerns to create a more balanced steel import system. Gareth Stace, the director general of UK Steel, stressed the need for a competitive business environment for domestic steelmakers.
Conclusion
The TRA’s proposed caps on UK steel imports aim to restore fairness in the market and protect domestic producers. If the UK government approves the changes, they will take effect by October 2025. As the public consultation period ends, stakeholders have one final opportunity to provide feedback.
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