EU extends steel safeguard measures for another 2 years

DNVN - On July 1, the Vietnam Trade Office in Belgium, Luxembourg and the EU announced that the EU has extended the steel safeguard measures until June 2026. Vietnam is also one of the countries exporting to the EU affected by the extension of this regulation.

On June 25, the European Commission published regulations on the extension of safeguard measures on steel for another two years, until June 2026. This decision comes after an investigation requested by 14 EU member states, which found that safeguard measures continue to be necessary to prevent, or remedy, serious injury to the EU steel industry.

This also shows that the EU industry is adjusting to higher import levels.

The extension and adjustment of the regulation is justified by a combination of factors that put significant import pressure on the EU market. In particular, high global steel overcapacity and increased exports from China to third countries, especially in Asia, leading to increased exports from those third countries to the EU.

Demand for steel in the EU has fallen significantly.

The EU investigation found that Vietnam, Indonesia and Malaysia have seen capacity growth rates ranging from 35% to 95%, while steel demand has either declined or increased slightly. Several other economies in the Middle East, South Asia and North Africa are also seeing this imbalance in capacity growth (such as Iran, Pakistan and Algeria).

The increasing number of trade defence measures and other trade restrictions imposed by third countries has led to a diversion of exports directly or indirectly to the EU. For example, the US regulations on some steel products; Brazil; Mexico increased import duties from 15% to 25% on some steel products.

Steel demand in the EU has fallen significantly. The Chairman of the Steel Committee of the Organisation for Economic Co-operation and Development (OECD) in March 2024 forecast that global steel demand growth will continue to be sluggish in 2024 and 2025. Ongoing economic uncertainty will continue to weigh on steel market growth in the coming quarters of 2024.

Vietnam is also one of the countries exporting to the EU affected by the EU's extension of the steel safeguard measures, according to the Vietnam Trade Office in Belgium, Luxembourg and the EU. The technical regulation on the extension will take effect on July 1, 2024 and will expire on June 30, 2026.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/eu-gia-han-bien-phap-tu-ve-thep-them-2-nam/20240702073310359