EU: New rules protecting steel industry from global overcapacity become effective
The implementing regulation details the distribution of tariff quotas to trading partners.
The European Commission (EC) has published an implementing regulation setting out the distribution of tariff quotas to EU trading partners under the new Steel Regulation, which comes into effect on July 1, 2026. The new system is designed to protect the EU steel sector from the damaging impacts of global overcapacity following the expiration of the previous steel safeguard.
According to today’s EC release, half of the EU's annual import quota—set at 18.3 million tonnes by the Steel Regulation—has been reserved exclusively for preferential free trade agreement (FTA) partners, with the remaining half available to all trading partners without discrimination, including FTA partners. The EU's FTA partners will, therefore, retain a significantly higher share of EU market access than the average reduction of 47% foreseen by the Steel Regulation.
The Steel Regulation also introduces a traceability requirement under which companies must provide information on where the “melt and pour” stage of imported steel production takes place.