A senior industry figure has called on the Government to take robust retaliatory action against the European Union’s new trade restrictions on British steel, warning that they could devastate the UK’s manufacturing base.
Simon Boyd, managing director of Dorset-based structural steel company REIDsteel, urged ministers to impose reciprocal tariffs to protect UK producers, manufacturers and supply chains after Brussels announced plans to slash tariff-free quotas for British steel exports.
The EU’s new measures will halve the UK’s tariff-free quota for structural steel exports and impose a 50% tariff on all shipments exceeding that limit, as part of a wider package designed to curb imports of Chinese steel.
“The total EU market for structural steel is eight million tonnes per annum, of which the UK is currently granted a tariff-free quota of 108,000 tonnes — less than 2% of the market,” Boyd said.
“Conversely, the UK market is 800,000 tonnes per annum while EU producers enjoy a tariff-free quota of 680,000 tonnes, equivalent to 85% of the UK market. Hardly fair trade.”
Boyd, who earlier this year campaigned to save British Steel’s blast furnaces at Scunthorpe, said the proposed changes would leave British exporters “virtually shut out” of the European market while allowing EU producers near-unrestricted access to the UK.
“All UK producers will be impacted by this change in policy,” he said. “Not only will exports be hit, but we could see a flood of imported steel if we don’t tighten our own trading measures.”
He called for the Government to “react boldly” by either negotiating an exemption from the EU’s anti-dumping measures or threatening equivalent counter-tariffs to restore balance.
“The EU may need to prop up its own ailing steel sector and fight off Chinese dumping, but this cannot be at the expense of the UK,” he warned. “There is no time to lose.”
According to industry body UK Steel, the sector directly employs 36,800 workers and supports a further 46,000 jobs in its supply chain. It contributes £1.7 billion directly to the economy, £2.2 billion through its supply network, and adds £3.1 billion to the UK’s balance of trade.
Industry leaders fear that without decisive action, the EU’s new tariffs could accelerate the decline of Britain’s heavy industry and undermine the Government’s ambition to rebuild domestic manufacturing.
Jamie Young
Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.
When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.
