The bloc will slash steel imports by half, which is bound to negatively affect Ukraine’s industry
An EU proposal to drastically cut its steel import quota in response to global overcapacity and the shrinking of local manufacturing will hurt Kiev, Ukrainian manufacturers and officials have told the Financial Times.
The quota is expected to be cut by 47% on July 1, and the bloc will levy an additional 50% tariff on any steel imports above that amount. According to the EU authorities, the new regulation is meant to protect local manufacturers and address the “negative trade-related effects” of global overcapacity on its steel market. A surge in imports has already cost European steel mills thousands of jobs, forcing manufacturers to operate at reduced capacity.
The quota cut is expected to heavily affect Ukraine, which has emerged as a major supplier of steel to the EU. While Kiev has had free trade agreements with the bloc, the new quota will apply to all trading partners to comply with WTO rules.
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