UK agrees steel quota access with EU under new trade protections

Britain has confirmed new steel trade protections, agreeing quota access with the EU to limit the impact on its biggest trading partner and ensure stability for UK-EU steel trade.

Britain on Thursday confirmed details ​of new steel trade protections due to ‌take ​effect on July 1, saying it had agreed quota access with the European Union to limit the impact on its biggest trading partner.

Britain and the EU have ‌both moved to protect domestic steel producers, citing concerns over the "dumping" of highly subsidised steel from countries such as China, and have held talks to ensure their measures do not adversely affect each other. Britain said on Tuesday the EU would have ‌tariff-free quotas across multiple steel product categories, including 375,000 metric tons a year for some flat steel products, and ‌that the bloc would offer reciprocal access for British steel.

Trade minister Chris Bryant said Britain had "engaged closely with the bloc" and the measures would "provide stability for UK-EU steel trade". "We recognise that this will create changes to trade flows including with some of our closest trading partners," he ⁠said. "We want ​to reassure them that the ⁠UK remains committed to our international obligations and to constructive engagement on our steel measure."

Steelmakers have struggled to survive in the birthplace of the ⁠Industrial Revolution after decades of decline driven by deindustrialisation and, more recently, high energy costs and a global glut of cheap steel. Ministers ​have warned of an existential threat to Britain's steel industry unless protections are renewed and enhanced.

Setting out final ⁠details of the measure, first announced in March to replace a safeguard that expires on June 30, Britain said imports allowed under tariff-free quotas ⁠would ​be cut by 51%, rather than the 60% previously proposed. Imports above the quota will face a 50% tariff, up from 25%. Bryant said the overall quota volume would be about 3.2 million tons, around 21% higher than ⁠previously proposed.

The changes will take effect next month. The EU and the U.S. have also raised tariffs on steel outside ⁠quotas to 50%, though ⁠Britain has secured a lower U.S. tariff of 25%.

India had voiced concern over Britain's new steel measures, but has since said it has been reassured as the countries prepare to ‌implement a free ‌trade deal.