UK Steel Industry Warns of Crisis as it Demands Clarification on EU Steel Quotas

The British government said that it needed urgent clarifications on the steel import quotas set by the European Commission. This was because the steel industry in the country warned that the measures could lead to the closure of many businesses if the government failed to secure exemptions.

A leading trade group warned that the proposed reduction in tariff-free import quotas for steel to the EU (78% of UK steel exports) and a tax on excess shipments may put at risk the British steel industry, already in trouble.

When asked if Britain sought an exemption from these proposals, Keir starmer replied that he would support the sector strongly and could say more at a later date.

He told reporters on Tuesday night, late, on his way to India on an official trip, "I won't go into details but I will tell you that we are talking about this with both the EU and the U.S."

INDUSTRY WARNS ABOUT FLOODING OF DIVERTED STEEL; JOBS RISK

The European Commission proposed on Tuesday to cut tariff-free import quotas for steel by nearly half, and to apply a 50% tax on excess shipments. This is in an effort preserve viable steelmaking within the European Union.

British Industry Minister Chris McDonald stated that the government "is pressing the European Commission to clarify urgently the impact this move will have on the UK".

The British steel industry warned that the proposals could lead to a flood of steel from the EU into the UK. The steel industry called for the government to negotiate preferential treatments with the EU, and to set up its own quotas in order to protect domestic producers.

Gareth Stace is the director-general of industry group UK Steel. He said that the possibility of the EU's actions redirecting millions tons of steel to the UK could be fatal for many of our steel companies.

The group claimed that the proposals would threaten thousands of jobs throughout Britain where the steel industry directly employs 37,000 workers and supports an additional 42,000 jobs through the supply chain.

Stace stated that this is the worst crisis ever experienced by the UK steel industry.

Starmer's Government showed its commitment to steel industry by seizing control of British Steel from its Chinese owner earlier this year to ensure national supply.

Starmer agreed in May to a trade agreement with the U.S., meaning British steel producers will face U.S. Tariffs of 25%. This is below the 50% tariffs faced by other nations. British officials wanted to lower the tariffs to 0% as part of a quota.

Less than 10 percent of British steel exports go to the United States.

In August, Britain announced that the EU would eliminate tariffs on certain steel products as part of an agreement to reset ties.

(source: Reuters)