Council and European Parliament strike deal to protect EU’s steel industry from global overcapacity

The Council Presidency and the European Parliament reached a provisional agreement yesterday on a regulation aimed at addressing the negative trade-related effects of global overcapacity on the EU steel market.

The regulation will introduce a new framework to protect the EU steel sector from global excess production and trade diversion, while ensuring that the measure remains compatible with the EU’s international trade obligations and sufficiently flexible for economic operators, including downstream industries. It will replace the current EU steel safeguard measures, which are due to expire on 30 June 2026, thereby ensuring continued protection for the EU’s steel market without regulatory gaps.

The new rules introduce a revised tariff-rate quota (TRQ) system designed to better address structural global overcapacity in the steel sector, including a significant reduction of import quotas and higher duties for imports exceeding those quotas.

Find more information on the official website of the Council of the European Union.