Latest News

Britain claims that the EU will remove tariffs on steel as part of a quota

As part of the recent agreement to reduce trade barriers and reset ties, Britain announced that the European Union would remove tariffs from key steel products as of Friday.

In May, Britain reached the most significant reset in defence and trade relations with the European Union (EU) since Brexit. This included a “bespoke arrangement” to protect UK exports of steel from new EU tariffs and rules.

The British government had previously stated that the European Commission will restore Britain's country-specific steel quotas to levels prior to 2022, but it had not specified a date for this action.

Jonathan Reynolds, the UK's Trade Minister, said that the removal of tariffs is "yet another step forward" for the UK Steel Sector. The government intervened in order to save British Steel jobs and reached a deal with the United States to avoid their highest steel tariffs.

He said that restoring the steel quota would give producers confidence to grow and compete in the market, as well as maintain important export relationships.

The agreement allows Britain to export up to 27,500 tonnes of steel per quarter to the EU without having to pay an additional tariff.

Gareth Stace said that the restoration of quotas was "excellent news" and added that companies were "plagued with problems" when shipping support beams.

Britain has yet to complete negotiations with the United States, after both sides agreed to work together to eliminate steel tariffs for exports from Britain in May.

British steel exports are subject to a 25% tariff in the U.S., although it avoided a 50% increase thanks to an agreement with the U.S. However, talks on removing the tariffs have been stalled because of discussions about supply chains and the location where British steel "melts and pours".

(source: Reuters)