The UK government has confirmed that tariffs on steel imports will be extended for two more years having been due to expire, a move which the international trade secretary said was “in the national interest”.
The recent increase in energy prices has left British steel firms facing an acute financial squeeze, and ministers have moved to deter businesses from importing steel from elsewhere to avoid dealing further blows to domestic steel producers.
The UK steel industry turns over £2 billion per year and provides jobs for around 34,000 people. Industry body UK Steel had also warned that if the government were to end import tariffs on steel, it could see the domestic industry lose out on £150 million.
The import controls seek to protect the UK market from being saturated by an excessive supply of cheaper steel from abroad, by imposing tariffs when a certain quota has been reached.
While international trade secretary Anne-Marie Trevelyan and prime minister Boris Johnson have talked up the need for import controls to protect British steel firms, there are concerns that the decision could breach international law by contravening the UK’s international legal obligations as set out by the World Trade Organisation [WTO].
Yet, Trevelyan said: “However, from time to time, issues may arise where the national interest requires action to be taken.
“The government is actively engaged with interested parties, including those outside the UK on the future of the UK safeguards and has listened to the concerns raised.”
Steel import controls were first introduced in 2018 by the EU in response to tariffs imposed by the Trump administration in the US. The UK chose to adopt import controls of its own once Brexit was fully enacted.
The measures currently cover 15 different steel categories. Controls regulating the supply of 10 of these were already in place until 2024, while limits on a further five were due to expire at the end of June 2022 before the government announced the two-year extension.
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