Eurofer proposes to cut 75% steel import quota

According to the data released by the European Iron and Steel Industry Union, shorten as European Steel Union (Eurofer), the steel consumption of the automobile industry accounts for 18% of the total steel consumption of the EU. At present, the Eurofer has written to the chairman of the European Commission, calling for a variety of measures to support the steel industry out of difficulties.

The Eurofer requires the European Commission to immediately review the existing trade safeguard measures, and proposes to reduce the steel import quota by 75% within six months to help the European steel industry cope with the current difficult situation; for imported steel exceeding the quota, the tariff rate can be reduced to less than 25%. The Eurofer also recommended the implementation of crisis and safety related steel import restrictions.

The EU announced in February last year that the final trade protection measures for steel products will last until June 2021, during which the EU will set import quotas for 26 kinds of steel products and impose 25% tariffs on the parts exceeding the quotas. Eurofer welcomed the move at the time, while the European Association of Automobile Manufacturers (ACEA) accused it of trade protectionism.

In addition, the Eurofer called on the European Union and its member states to regard the steel industry as a "necessary industry" so that it can remain operational in the crisis.