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The European Commission has presented a new proposal aimed at protecting the EU steel sector from the growing challenge of global overcapacity. The initiative seeks to ensure the long-term competitiveness and sustainability of a strategically important industry that underpins much of Europe’s economy and green transition.

The plan delivers on the commitments of the EU Steel and Metals Action Plan and introduces several key measures: limiting tariff-free steel import volumes to 18.3 million tonnes a year (a 47% reduction compared with 2024 quotas), doubling out-of-quota duties from 25% to 50%, and introducing a “Melt and Pour” requirement to ensure full traceability and prevent circumvention. These measures will replace the current steel safeguard mechanism, which is set to expire in June 2026.

President von der Leyen underlined the urgency of the proposal, noting that global overcapacity continues to undermine the EU steel industry’s ability to invest in decarbonisation and maintain employment. The proposed measure, fully compliant with WTO rules, will now move through the ordinary legislative procedure, requiring approval by both the European Parliament and the Council.

At the Implementation Dialogue on Rules of Origin held in July with Commissioner Maroš Šefčovič, which CLECAT attended, the challenges facing the European steel industry were already a central topic of discussion. Industry representatives highlighted the need for stricter “Melt and Pour” certification and more robust trade measures to counter unfair competition. CLECAT supports continued dialogue between the Commission, Member States, and stakeholders to ensure that trade policy and customs rules work in concert to support strategic industries while maintaining open, fair, and rules-based trade.