UK government ignores TRA steel quota recommendation

The UK government has ignored the advice of the independent Trade Remedies Authority and extended safeguards on 16 steel products to June 2024, after a backlash from numerous politicians and UK Steel.

The products now remaining within the safeguard are hot-rolled coil, cold-rolled coil, metallic sheet, organic coated sheet, rebar, rails, gas pipes, hollow sections, large welded tubes A and B, other welded pipes, tin mill products, quarto plates, merchant bar and light sections, wire rod, and angles and sections. Measures have been terminated on stainless bars and light sections, stainless wire rod, non-alloy and alloy cold finished bars and non-alloy wire.

TRA had initially recommended revoking the measures on nine product codes, including merchant bar and light sections, wire rod and angles and sections. But international trade minister Liz Truss said yesterday that the government had overruled the TRA, extending special powers to prolong quotas on more products.

As with the initial safeguard, unused quota can be rolled from one quarter into the next and where a country exhausts its quota, it can have access to a portion of the residual quota in the fourth quarter of the period, April-June. The duty rate where quotas are exceeded will remain at 25pc.

UK Steel, which represents UK steelmakers, said the "bold move" will "safeguard the sector's ability to innovate, modernise and decarbonise", and that repealing some of the measures would have led to a "potentially existential threat". The safeguard is designed to maintain traditional trade flows and prevent deflection of imports from other jurisdictions with trade-defence measures in place.

The UK rolled over the EU safeguard measures after the end of the Brexit transition period without an investigation. Some respondents to TRA's recent review, particularly national governments, said the continuation of the safeguard without an investigation was incompatible with World Trade Organisation rules.

Traders bemoaned the late notice of Truss's announcement, especially as there is no shipping clause, meaning material on the water will factor into the quota despite there being no clarity over the measures or potential volumes when it was booked.

By Colin Richardson