EU Tightens Steel Import Restrictions

EU to Tighten Steel Import Restrictions Next Month

BRUSSELS (Reuters) - The European Commission on Tuesday said it would tighten import restrictions on steel from next month in a bid to shield the ailing European steel sector from surging imports.

The EU will reduce import quotas, known as safeguards, limiting the amount of steel that can be imported into the bloc of 27 nations tariff-free.

The move confirms announcements made by Commission Vice President Stephane Sejourne last week.

In an interview with Reuters, Sejourne said the measures would cut inflows by approximately 15%.

Volumes imported within the quotas reflect established trade flows and are not subject to tariffs. Any steel imports outside the quota will be hit by a 25% tariff.

Countries will also no longer be able to roll over unused quotas of other countries and for categories with high import pressure and low consumption, the Commission said.

"The tightened measure will create breathing space for EU steel producers to increase their production and thus regain lost market share. It also aims to increase employment and investment in green steel production," it said.

(Reporting by Bart Meijer, Editing by Louise Heavens)