With the EU Commission prioritising a steel trade deal with the United States over the UK, this article features comment from Paul McFadyen, Chairman at metals4U, one of the UK’s leading online metal suppliers…
Paul warns that the window for meaningful UK-EU engagement on steel trade policy is closing fast, and that unless the government acts urgently, British businesses and supply chains could face serious consequences when the EU’s new tariffs come into force this summer.
“The window for meaningful engagement between the UK and EU on its steel trade policy is narrowing fast, and it’s very frustrating to see the EU Commission prioritising a deal with the United States ahead of the UK.
“This decision could have real consequences for British businesses and supply chains that depend on them, unless it can be brought forward. The government should do everything in its power to push for an alignment on trade policy that will see the UK sheltered from the EU’s new tariffs coming in the summer.
“The manufacturing sector has seen several positive updates take place recently. Last month, the government announced that it will cut tariff-free steel import quotas by 6%, and impose a 50% tariff on above-quota imports from the 1st July.
“More recently, the government announced energy intensive manufacturing industries, including steelmaking, will benefit from reduced energy costs, in a move that will significantly benefit the manufacturing sector in the UK.
“Whilst this is a positive step for supporting domestic production and protecting against cheap imports, it’s now important that the positive domestic picture is matched with equal ambition when it comes to trade.
“The industry needs clarity and certainty about supply, pricing and the long-term stability of the steel market. To do that, there must be a UK-EU steel arrangement that is treated as an economic priority.”
