The European Parliament's (EP) Committee on International Trade (INTA) has published a draft report that significantly modifies and strengthens the European Commission's October proposal to address global steel overcapacity by introducing tougher trade protection measures, new bans based on origin, and stricter monitoring requirements.
The new draft by speaker Karin Carlsbro, Vice-Chair of INTA, marks the first official parliamentary response to the Commission's resolution, published in October 2025, which aimed to limit the impact of subsidized and excess steel production from third countries on the EU market. Lawmakers are now seeking to strengthen some elements of the original plan, citing the severity of market distortions and the need for stronger protection for European industry.
Tougher trading protection system than the October offer
Although the Commission has proposed halving duty-free quotas and raising non-quota duties from 25 percent to 50 percent, the Parliament's draft supports this increase but calls for stricter enforcement of all product categories, with additional safeguards to prevent manipulation and circumvention of quotas. The draft also highlights structured monitoring of quota usage, more detailed reporting obligations, and a more thorough examination of sudden import surges to prevent preloading and circumvention, an element less prominent in the October proposal.
New ban on steel smelting in Russia or Belarus
One of the most significant changes introduced by the parliament is a complete ban on steel smelting and casting in Russia or Belarus. The Commission's October proposal did not contain such a ban; instead, it relied entirely on tariff quotas and higher non-quota duties.
The Parliament's draft introduces a much tougher measure:
- A complete ban on steel "melted and bottled" in Russia or Belarus, regardless of the country of final processing.
- This reflects geopolitical considerations and is aimed at closing the loophole when Russian or Belarusian slabs are rolled or finished in third countries before entering the EU market.
- Steel of Ukrainian origin remains exempt from tax.
Increased requirements for the origin of melting and pouring
Offer
