UK-EU Steel Trade Talks May Run to Deadline as New Import Rules Loom
Britain Faces Uncertainty as Steel Import Protections Near Expiry
LONDON, June 22 (Reuters) - Talks with the EU on steel could run to the wire as Britain runs up against an end-month deadline to replace its import protections, Britain's industry minister said on Monday, apologising to businesses for uncertainty.
Background: Expiry of Pre-Brexit Steel Trade Rules
Britain's steel trade rules, originating from before Brexit, expire on June 30. London has indicated that they will be replaced with a new trade measure that will reduce the quota of steel that can be imported tariff-free and double the tariff on imports exceeding that quota.
Ongoing Negotiations with the EU
However, details of the measure are still being finalised, and there are talks about market access with the European Union, which is also renewing its steel trade measures amid worries over dumping before they expire next month.
Minister's Statement on Negotiation Timeline
"History tells us that EU negotiations do tend to go to the wire," industry minister Chris McDonald told Reuters, adding that "we're confident that we'll be able to come to some sort of arrangement in time."
"I can't do more than apologise to those businesses who find this uncertain... but rest assured, they'll have to be finished before (July 1)."
Potential Impact on UK Steel Industry
British ministers have previously indicated that Britain and the EU should be able to agree mutually beneficial exemptions to each other's measures.
Risks of No Action
McDonald, who is a junior minister in the Department of Business and Trade, said there was "no possibility" of moving the July 1 date, and if Britain didn't take action, "the UK will become the global dumping ground for subsidised steel, which would wipe out our steel industry in very short order."
Global Context: Steel Dumping Concerns
Britain, the EU and others are moving to protect domestic steel producers as they flag concern over the "dumping" of highly subsidised steel from countries such as China.
Message to Businesses Amid Political Turmoil
McDonald said he was giving businesses a message of "continuity and certainty" despite the turmoil caused by Keir Starmer's announcement earlier on Monday of a timetable for his resignation.
(Reporting by Alistair SmoutAdditional reporting by Sam TabahritiEditing by Peter Graff)
