Changes from plenary report to adopted text

RemovedEXPLANATORY STATEMENT

RemovedThe EU needs a strong, competitive and decarbonised steel sector as this sector is vital for the EU's competitiveness, economic security and strategic autonomy. The steel sector is also essential for the EU’s decarbonisation goals, not only in reducing its own carbon footprint but it also constitutes an important input in the green tech sector. Steel is furthermore key for strengthening Europe’s defence industrial base.

RemovedAs the third largest steelmaking industry in the world, and with steel production in more than 20 Member States, the EU steel producers employ 300.000 people directly and count indirectly for 2,5 million jobs. It carries an important role in many regional economies.

RemovedHowever, the trade related challenges the EU steel sector is facing are only increasing. The already distorting global overcapacity, that generates cheap steel surplus and high import pressure on the EU market, further aggravated by diverted steel from protective measures by several of EU’s trading partners, is expected to continue increasing in the coming years. The EU steel production has dramatically decreased in the last decades, leading to sites closing down and the gap between production and capacity levels increasing. The European steel sector cannot stay competitive if decreasing profit levels do not allow for necessary investments in decarbonisation.

RemovedAs the already prolonged provisional safeguard measures put in place in July 2018 are set to expire in June 2026, it is essential to establish a robust and rules-based mechanism to allow the sector to recover, while aiming for a strengthened foundation for more free trade. The global steel situation in general and the state of the European steel sector in particular make it clear that a strong, effective and targeted measure is necessary. In this context, the Rapporteur welcomes the draft legislative proposal, which was announced in the March 2025 Steel and Metal Action Plan (SMAP). The Rapporteur also fully concurs with the assessment made by President von der Leyen in her State of the Union address in September 2025 regarding the strategic necessity of shielding EU industries from unfair trading practices and preserving a global level playing field.

RemovedWith regard to the substance of the proposal, the Rapporteur welcomes that it is a step in the right direction from the existing safeguard measure. The Single Market should remain open for rules-based trade and the Rapporteur therefore strongly supports that tariff free quotas continue to allow for a market based approach while the overcapacity and the subsequent diverted trade be handled with a clear duty level beyond the quotas. For the calculation of the tariff-free quota, the Rapporteur finds that using 2013 as the reference year - before overcapacity severely impacted Europe - represents a balanced and WTO-consistent benchmark. The Rapporteur stresses the importance of the 'Melt and Pour' requirement which will enhance product traceability, ensure the genuine origin of steel inputs, and reduce the risk of circumvention through transhipment or minimal processing.

RemovedThe proposed steel measure needs regular evaluation and allow for adjustment in order to ensure that it efficiently contributes to increased production in highly competitive companies and goes hand in hand with efforts to ringfence export markets and cooperation in fighting global overcapacity together with likeminded trading partners. It cannot be a tool to hold uncompetitive industry alive while pushing the problem further down the value chain. A competitive steel production also, importantly, ensures that the EU does not build up an unhealthy dependency. The Rapporteur looks favourably to regular assessments of the scope and believes they could occur on a more frequent basis. An annual reporting is in line with this type of trade instruments and allows the co-legislators to understand how the implementation of the different dimensions of the instrument evolves.

RemovedIn a time when the multilateral trading system is under sustained pressure, the Rapporteur particularly welcomes that the proposed regulation has been designed to remain fully compliant with WTO obligations. The Rapporteur will follow with close attention the negotiations to be conducted with affected trading partners, in particular those with whom the Union has concluded—or is in the process of concluding—Free Trade Agreements, in order to ensure legal clarity, predictability, and the continued integrity of the EU’s trade defence architecture.

RemovedThe Rapporteur also believes that the specific situation of EU candidate country Ukraine should be duly taken into account. Consequently, this legislation needs to be in line with the Union’s commitment to support Ukraine’s economy during the ongoing war of aggression as well as in consistency with the political agreement on Regulation 2025/1153 (COD).

RemovedSimilarly, the Regulation should address any potential loopholes that could permit the direct or indirect importation of goods originating from Russia, further financing the continued Russian hostile activities and undermining of European peace and stability.

RemovedWhile allowing the co-legislators to fulfil their work, the magnitude of challenges faced by the steel sector and the urgency of providing legal and economic certainty, the Rapporteur believes that the democratic process should advance without delay so that the regulation can enter into force on time.