The EU's new post-safeguard steel regulation is scheduled to take effect on 1 July, applying to imports from all third countries, as widely expected, according to the latest draft of the regulation.
Only Norway, Iceland and Liechtenstein will be exempt under a European Economic Area agreement.
The International Trade Committee plans to vote on the draft at the end of January, paving the way for inter-institutional negotiations early next year.
Under the framework, importers will be required to provide evidence of the country where steel was melted and poured from 1 October 2026. Within two years of the regulation coming into force, the European Commission will also assess whether this "melt and pour" origin should become the basis for allocating tariff quotas by country. This could lead to a new legislative proposal, potentially reshaping quota distribution.
The regulation indicates that quotas may be allocated on a per-country basis, factoring in 2013 import volumes, current and future free trade agreements, and previous allocations such as those applied to UK-origin material. There are also minor adjustments to CN codes under certain product categories, although these appear to have a limited effect.
As previously reported, the measure will reintroduce the carry-over of unused quarterly quotas within the same annual period. These volumes will remain available for 20 working days into the following quarter.
The first review of the measure will be fast-tracked, with the product scope assessment due 18 months after coming into force. The commission plans to launch consultations by 1 October 2026. A broader evaluation will follow four years after implementation, with subsequent reviews every two years.
"The council has also added a new element for consideration when quotas are amended, ensuring attention to potential substantial price increases that could seriously undermine the competitiveness of downstream industries," the European Council said.
The draft also said that the commission should assess the necessity of adding steel-intensive goods 18 months after the implementation of this regulation,.
There is no mention of any ban on Russian steel in the current draft, as had been proposed in an earlier iteration.
