Malaysia's steel industry expresses concern about tougher EU import regime

The Federation of Metallurgical Industries of Malaysia (MISIF) has expressed concern about increased trade restrictions affecting Malaysian steel exports, calling on Malaysian producers to receive fair and equitable treatment as governments step up measures to address global steel overcapacity.

MISIF stated that it respects the right of the European Union, in accordance with the rules of the World Trade Organization (WTO), to introduce protective measures against global excess steel production capacity. However, the federation argues that Malaysia should not be at a disadvantage, as it exports steel to the EU in moderate volumes and does not contribute to the sharp increase in imports that are intended to be affected by protective measures. The COVID-19 pandemic, while some companies were just starting to enter export markets. According to MISIF, these lower export volumes do not reflect Malaysia's long-term production capacity or export potential.

Malaysia gets a limited quota for a specific country

In accordance with the new EU steel import regime, which entered into force on July 1, 2026, Malaysia received a country-specific quota only for non-alloy and other alloy wire rods. For the remaining 25 categories of goods, Malaysian exporters must compete within the framework of residual quotas distributed according to the "first come— first served" principle. Since Malaysia does not have a free trade agreement with the EU, it does not have the right to a more favorable allocation of the bloc's quotas in the free trade area. Imports exceeding the quota are subject to a 50% tariff.

MISIF stated that this result does not ensure fair treatment, arguing that Malaysia has limited access to the European market, despite the fact that it does not contribute to a sharp increase in imports, while larger exporting countries We have received special quotas.

The Federation highlights problems in other export markets

The Federation also highlighted problems in other export markets. He noted that Malaysian steel is still subject to a 50 percent Section 232 tariff in the United States, while only a limited number of U.

S. free trade agreement partners are exempt from this tax. He also pointed to procedural and market access issues in Mexico, where registration and classification requirements continue to make it difficult to enter the market.,