The Trade Remedies Authority (TRA) has today initiated a Tariff Rate Quota (TRQ)
review of steel imports that are part of the UK’s safeguard
trade remedy measure. The TRA will assess whether the tariff rate
quotas for Russia and Belarus should be re-allocated to avoid a
potential shortage of steel in the UK.
UK to consider adjusting tariff rate quotas to ensure a
steady supply of steel
As with any safeguard measure, the UK has given all importing
countries a quota to import a certain amount of steel at a basic
tariff rate into the UK. Once their quota is exhausted, they have
to pay a higher rate. Exporters from Russia and Belarus may not
be able to fulfil their quotas because the UK has imposed
sanctions on some imports from these countries, including steel.
Reallocating the Russian and Belarus quotas could help ensure a
regular supply of steel needed for construction, engineering, the
automotive industries and other uses.
The TRA’s proposed course of action will be to redistribute the
country-specific TRQs for the Russian Federation and the Republic
of Belarus to other exporting countries. For more detail of this
proposal, view the initiation documents for this review on TRA's
public file [link].
A trade remedy framework which adapts to changing
circumstances
Tariff Rate Quotas (TRQs) are part of the World Trade
Organization (WTO) framework. They specify how much of a product
can be imported from a country before its imports are subject to
higher tariffs. The UK’s trade remedies system follows WTO rules
and is designed to make sure UK industries are not damaged by
unfair trade practices or unexpected surges in imports. The TRA
manages the UK’s trade remedy measures and has extended a
safeguard measure countering steel imports which the UK inherited
from the EU system when it left the European Union. The UK has
the power to review its Tariff Rate Quotas on imports covered by
safeguard measures if circumstances change after the measure is
set. This TRQ Review is an economic adjustment to respond to a
change of circumstances. TRQs are also reviewed regularly and
liberalised progressively.
What this means for importers and users of steel in the
UK
The TRA will review steel Tariff Rate Quotas for the Russian
Federation and the Republic of Belarus that are part of the UK’s
steel safeguard measure and decide if the tariff rate quotas held
by Russia and Belarus should be reallocated. The two product
categories which may be affected are category 1 (non-alloy and
other alloy hot rolled sheets and strips, used in yellow goods,
construction, tube-making and the production of downstream steel
products) and category 13 (rebars, which are used in
construction, the automotive industry, engineering and white
goods manufacture).
Oliver Griffiths, TRA Chief Executive, said:
“The TRA has the discretion to act quickly when there’s a
change of circumstances which affects the UK economy. This review
looks to address the risk of a shortage of steel into the UK as a
result of sanctions on Russia and Belarus. Reallocating quotas
should help keep steel prices down for construction and other
domestic industries.”
Register your interest in this TRQ review
Businesses which think they may be affected by a change in the
quotas (for instance, importers of steel and businesses which use
imported steel) can visit the TRA’s public file to find more
information. You can also register your interest in the review on
the TRA’s online case
platformand submit any comments to the TRA by Tuesday 12
April.
Background information/Notes to editors
- Safeguard measures are one of the three types of trade
remedies – along with anti-dumping measures which counter goods
being dumped in countries at prices below their normal price in
their country of origin and countervailing measures against
countervailable subsidies – that are allowed under World Trade
Organisation (WTO) rules.
- Trade remedy investigations were carried out by the EU
Commission on the UK’s behalf until the UK left the
EU.
- The Trade Remedies Authority is the UK body that now
investigates whether trade remedies measures are needed.
- Forty-four EU trade remedies measures that were of interest
to UK producers were carried across into UK law when the UK left
the EU and the TRA needs to review each one to check if it is
suitable for UK needs.
- As part of this process, the TRA reviewed a safeguard measure
on certain steel products, reporting its recommendation in June
2021. The TRA recommended that measures should be extended on
some steel products but removed on others, where they were not
needed. The TRA has since been asked to reconsider this decision
and this process is under way. The reconsideration has been
‘called in’ by the Secretary of State for International Trade and
the TRA will complete the reconsideration under her
direction.
- The UK regularly reviews its tariff rate quotas (TRQs) to
make sure its safeguard measures remain up to date and useful.
This is not part of the reconsideration process.
