Posted on 04 Mar 2021
The World Trade Organization (WTO) highlighted its position on steel safeguards imposed on 26 product categories by the European Commission (EC) in July 2018.
According to the global trade body, the EC is unlikely to extend the safeguards for more than one year, unless the steel producers are able to prove that they continue to suffer or will suffer serious injury due to imports. Moreover, any measure imposed for more than one year must undergo progressive liberalization, WTO noted.
The EC had launched an investigation in end-February this year in order to determine whether the current EU steel import safeguards should be extended beyond its expiry on June 30th. The investigation was initiated on the basis of requests by 12 EU member states, following continuous import pressure from third countries.
The period of safeguard measures shall not extend four years, including an extended one-year period. Extension up to a maximum period of eight years could be made only if the imports prove to cause significant impairment to domestic industry.
As per trade data, the import pressure from China has subsided, when compared to the period before three years. In fact, China has now become a major importer of semi-finished steel products, owing to unprecedented surge in domestic demand.
Source:Scrap Monster
