LUXEMBOURG (dpa-AFX) - EU member states have adopted tighter regulations on steel imports. With this move, the European Union aims to shield the European market from global overproduction and cheap competition, particularly from China, India, and Turkey.

'Steel is indispensable for Europe's industrial base, its green transition, and its security,' stated Cyprus's Industry Minister Michael Damianos. Cyprus currently holds the presidency of the Council of the EU. The rules will take effect on July 1.

Reduced Duty-Free Import Quotas

Under the new guidelines, the duty-free import volume will be capped at 18.3 million tonnes per year. This represents a reduction of approximately 47 percent compared to previous levels. Volumes exceeding this threshold are to be subject to a 50 percent punitive tariff, double the previous rate.

According to the Council, the EU is the world's third-largest steel producer. Approximately 300,000 people are directly employed in this industrial sector.

Steel Industry Under Pressure

Nevertheless, due to import restrictions in other nations and global overcapacity, the EU market has become the primary destination for the world's steel surplus. This has led to low capacity utilization and high production costs within the EU. Global steel overcapacity is projected to rise to 721 million tonnes by 2027 - more than five times the EU's annual consumption.

The new regulation was previously negotiated with representatives of the European Parliament. MEPs have already formally ratified the compromise./wea/DP/stk