Posted on 14 Apr 2026
The European Parliament and Council have reached an agreement on the EU’s proposed new steel trade regime, confirming tariff-free quotas at 18.3 million tonnes/year, an out-of-duty quota of 50% and the “melt & pour” rule implementation. The text will now be considered for formal adoption by the European Parliament and the Council.
The first Parliament reading in plenary is expected on 18 May. The aim remains for the new measure to come into force from 1 July.
The Commission continues to prepare two implementing acts, on country allocation of quotas and the documentary evidence needed to meet the melt & pour requirement, respectively, Kallanish notes.
It is meanwhile also negotiating with trading partners under the General Agreement on Tariffs and Trade (GATT) Article XXVIII proceedings, thus ensuring the World Trade Organisation (WTO) compatibility of the measure.
The new trade regime will apply to imported products from all countries, except for EEA countries – the latter will still be subject to melt & pour requirements.
During the first year of application, unused import quotas will be permitted to be carried over from one quarter to the next for all product categories. From the second year onwards, the Commission will determine whether carry-over should be allowed for specific product categories, based on certain criteria.
Under the compromise reached by the co-legislators, the country where the steel is melted and poured will be used as one of the factors when allocating quotas to third countries. The Commission will have to assess within two years whether to designate the country of melt and pour as the basis for country-specific tariff quota allocations. If necessary, it will present a new legislative proposal.
Within six months of regulation entry into force, the Commission will assess whether the scope should be extended to cover additional steel products, such as pipe and wire. A second review within 12 months will assess whether the scope should extend to products made of or containing a significant amount of steel.
“The steel industry has been at the foundation of our European unity. There is no prosperous Europe without a sustainable, strong and sovereign steel industry. On this strategic sector, like many others, we will do whatever it takes to maintain production, jobs and skills alive in our continent,” says European Commission Executive Vice-President for Prosperity and Industrial Strategy Stéphane Séjourné.
EU trade commissioner Maroš Šefčovič adds: “The shape and global standing of Europe's steel sector are fundamental to our strategic autonomy and industrial strength. We therefore cannot afford to turn a blind eye to global overcapacity reaching critical levels. Today's outcome helps bring much-needed stability for our producers to thrive in Europe – because this is, at its core, about people and jobs.”
Source:Kallanish
