EU extends tariffs on Vietnam steel exports for another year
The European Union (EU) has decided to extend tariffs and quotas on various types of steel imports from Vietnam until the end of June 2024.
According to the World Trade Organization’s Safeguards Committee, the EU has extended safeguard measures for an additional year, starting from July 1, 2023, until June 30, 2024. These measures apply to certain types of steel imported under tariff rate quotas (TRQ).
The EU’s rationale for the extension is based on the continued significant losses suffered by its domestic steel production as they believe that the safeguard measures are necessary to address this issue.
Under the European Commission’s allocation system, each country has a specific quota, while the remaining countries share a common quota. Imports that exceed the quota are subject to an additional 25% duty.
Vietnam, along with other countries, will face TRQ on a quarterly basis for eight categories of steel, including hot-rolled steel plate, electrical engineering steel plate, galvanized steel plate, organic-coated steel plate, stainless cold-rolled steel plate, large steel pipes, and other steel pipes.
However, Vietnam is exempted from the safeguard measures for other categories of steel as it is considered a developing country with a steel import market share of less than 3%.
If the market share of other Vietnamese steel exports to the EU exceeds 3%, those specific steel categories will be subject to TRQ based on the EU’s annual administrative review.