One of Switzerland's largest steelmakers, Stahl Gerlafingen, is considering a decision to stop production of profiles due to the European Union's import restrictions on flat-rolled steel and plate products, even though it does not produce these products, due to commercial difficulties. The European Union's safeguard measures imposed in 2019 on rolled sheet and strip products have caused Switzerland to lose markets in European Union countries, with widespread economic consequences at domestic and international level.
Sources told SteelRadar that the issue has become part of a larger political dialogue involving the Swiss Ministry of Economy and negotiations between Switzerland and the European Union, which led to this decision, which is critical for the future of Switzerland's commercial profiling sector in particular.
However, in the current situation, the Ministry of Economy has said that it is difficult for Swiss or European Union importers to make a profit under conditions where they have to pay an additional 25% duty on any volume of products beyond the set quota. This created a major trade barrier for Swiss producers in particular and raised concerns about a further tightening of existing restrictions.
These are a concrete example of how protectionist policies and trade restrictions in the European steel market, even if not directly targeted, can have an impact on a wide range of industrial activities and trade relations. The current trade tensions between Swiss producers and the European Union play a decisive role in the future of both the regional and global steel market.
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