German Steel Federation CEO Kerstin Maria Rippel stated in her assessment: “The agreement reached last night is an important step toward securing Germany’s position as a steel and industrial hub. Our companies have been under significant pressure for years due to the effects of global overcapacity.”
At the center of the new trade defense instrument are country- and product-specific tariff quotas and a clearly defined cap. Imports exceeding this limit will be subject to a 50% tariff.
The Federation emphasized that the new regulation significantly strengthens the protection of steel producers in Germany and the EU, sending a clear signal from European institutions against the effects of global overcapacity, while also ensuring that the market is not completely closed.
The statement noted that the new system has been designed in compliance with World Trade Organization (WTO) rules and addresses key weaknesses in previous measures.
It was also stated that the new mechanism will provide greater flexibility, enabling a faster response to changing market conditions.
In addition, new rules on rules of origin are intended to prevent the circumvention of measures by rerouting steel through third countries.
Within the new system, an initial assessment of the covered products will be carried out within six months, and the mechanism will be reviewed regularly in line with market conditions.
Kerstin Maria Rippel added that the new trade defense instrument provides companies with a more predictable framework, which also supports the transition toward climate-neutral production.
She further stated: “Effective trade protection is a crucial step in overcoming the current industrial crisis. At the same time, further measures must be taken to sustainably enhance competitiveness. From an industrial policy perspective, it is critical to create markets for low-emission steel in the EU and ensure competitive energy prices for energy-intensive industries.”
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