The European Commission’s plan to reduce steel import quotas is causing concern among car manufacturers. They warn of the risk of higher costs and inflation.
European Commission wants to reduce steel imports
The European Commission’s (EC) plan to reduce quotas and increase tariffs on steel imports into the European Union goes too far, according to the automotive industry, and could lead to higher costs. This was stated by the European Automobile Manufacturers’ Association (ACEA).
The EC presented the proposal on Tuesday. It envisages a 47 percent reduction in steel import quotas to 18.3 million tonnes per year and an increase in customs duties on supplies exceeding these quotas from 25 to 50 percent. The proposal still has to be approved by EU member states and the European Parliament.
Car manufacturers and steelmakers have different positions
According to ACEA, the plan could have inflationary effects. “We do not question the need for some protection for industries such as steel, but we feel that the parameters proposed by the European Commission go too far in isolating the European market,” said Sigrid de Vries, the association’s director general.
European steel producers, on the other hand, welcomed the plan. Eurofer CEO Axel Eggert said the measures could save thousands of jobs. The Czech Steel Union called on the government to support the proposal in response to global overcapacity and unfair trade practices by third countries.
Source: ÄŒTK
