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The EU is launching negotiations on new steel measures to address global overcapacity

The European Union has taken an important step toward a new regulation aimed at limiting the negative impact of global overcapacity on the EU steel market.

The EU is launching negotiations on new steel measures to address global overcapacity

The draft Regulation proposed by the European Commission, which is intended to replace the current steel safeguard measures, has been placed on the agenda of the Committee of Permanent Representatives (Coreper).

The proposed regulation is set to replace the existing steel safeguard measures, which are due to expire on 30 June 2026. The draft aims to prevent global overcapacity from being redirected to the EU market as a result of trade-restrictive measures adopted by third countries. In this context, it envisages a reduction of the EU’s steel import quotas by approximately 47% compared to 2024 levels, while increasing the out-of-quota duty from 25% to 50%.

The Commission presented the draft to the Trade Questions Working Group on 14 October 2025. Member States examined the text in detail during a series of meetings and online consultations held in October and November. The Danish Presidency circulated a first compromise text on 2 December, followed by a revised version on 5 December reflecting feedback from Member States. After the final meeting on 8 December, the text was updated once again.

The revised compromise text includes the establishment of an online contact point for economic operators and a reduction of the initial review period from 24 months to 18 months. According to the Danish Presidency, the revised text addresses the main concerns of delegations and maintains an adequate level of protection in light of the challenges facing the European steel industry. At the same time, it introduces greater flexibility to safeguard the interests of end users and downstream sectors.

Based on feedback received from Member States by 9 December 2025, only a limited number of delegations indicated that they would not support the compromise text, suggesting that broad consensus has been reached within the Council.

Meanwhile, within the European Parliament, the file will be handled by the Committee on International Trade (INTA). The committee held an initial exchange of views on the draft regulation on 4 November 2025 and appointed Karin Karlsbro (Renew, Sweden) as rapporteur. The Parliament is expected to vote on its report at the end of January, with a mandate to enter negotiations likely to be granted by the Plenary in early February. Interinstitutional negotiations are expected to begin by the end of February.

Against this backdrop, Coreper is expected to approve the compromise text prepared by the Danish Presidency, thereby granting the Council a formal mandate to open negotiations with the European Parliament.

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