Brussels has proposed to the 28 member states to maintain protectionist measures until July 2021.

The Association of European Automobile Manufacturers (Acea) “deeply regrets” the decision of the European Commission (EC) to propose measures to continue restrictions on steel imports in the European Union (EU), as announced by a public release.

The European automakers denounce in a statement that the design of the proposal, which was announced shortly before Christmas, “does not take into account the needs of the automotive sector and will affect the competitiveness of the sector in the EU”.

Acea recalled that, last March, the EC launched an investigation in response to restrictions on imports of steel and aluminum in the United States. The result of this study was the provisional imposition of tariffs in Europe.

The EC decision establishes quotas based on average imports of different types of steel over the past three years and noted that a 25% tariff will be applied to all imports that exceed these reference figures. Now, on December 20, the European body proposed to the 28 member states that these measures extend until July 2021.

In this way, the European employers’ association questions the need for such “protectionist” commercial measures. In the automotive sector, “access to EU steel production is extremely restricted and imports are still needed to fill gaps in the supply chain,” he stresses.

According to Acea, the commercial data of the Government of the United States show a “relatively smaller” fall in the world exports of steel to the North American country, which is explained by high price, between 30% and 40% more than in the rest of the world .

“There is little reason to suppose a trade diversion that requires protection for EU steel producers, which are already highly protected by anti-dumping and anti-subsidy measures,” said Acea general secretary Erik Jonnaert.

EXPANSION – Jan 4 – 2019 (Translation Soft)