The government has boasted that British steelmakers stand to make millions extra a year as the EU gets rid of its steel tariffs today.
According to the Department for Business and Trade (DBT), the move represents a “direct win” from the Prime Minister’s EU deal signed back in May.
Furthermore, it means UK steelmakers will be able to export more steel used for large building projects – like support beams – to the EU tariff-free, supporting the UK’s wider economic growth ambitions.
The UK steel sector supports around 40,000 jobs across 1,145 firms, with a further 61,000 jobs in related industries that supply materials and services to steel producers. These changes, it is said, will enable UK steelmakers to once again export goods worth several millions of pounds annually to the EU, strengthening vital revenue streams for UK businesses.
Jonathan Reynolds, Secretary of State for Business and Trade, said: “This is yet another positive step forward for the UK steel sector and a clear example of our Plan for Change in action – removing barriers, supporting jobs, and backing British industry.
“Restoring our steel quota helps give producers the certainty they need to compete, grow, and maintain vital export relationships.
“This builds on the significant support that this pro-steel Government has already delivered – from our £500m investment in Tata’s green steel transition, to action to safeguard jobs at British Steel in Scunthorpe, and our deal with the US to reduce tariffs on UK steel.”
According to the DBT, the restored quota will re-establish historic trade flows between the UK and the EU, easing the administrative and financial burdens that have affected steel exporters.
It will also provide much-needed certainty for UK steel operating in an increasingly volatile global market, the department says. Crucially, it is expected that this change will help safeguard skilled jobs across the country and preserve long-standing supply chains with EU customers.
The country-specific quota allows the UK to export a certain amount of steel to the EU without paying an extra tariff, helping maintain fair trade and avoid sudden surges in imports. The UK can now export up to 27,000 tonnes of steel to the EU each quarter – roughly a football stadium’s worth of steel every year.
Bespoke agreement
Nick Thomas-Symonds, EU relations minister said: “We have worked constructively with the EU to deliver in our national interest and achieved a bespoke agreement to help secure jobs in steel across Britain.
“Today’s news that the EU is slashing tariffs on British Steel shows our approach is working and is another win for UK PLC.”
Gareth Stace, from UK Steel, said: “The restoration of the country specific quota is excellent news for UK steel companies which have been plagued by problems shipping category 17 products into the European Union.
“The quota will restore historic trade flows and is good news for both UK steelmakers and their EU customers.”
Lisa Coulson, British Steel’s interim chief commercial officer, said: “The removal of EU tariffs on British-made steel is a significant boost to our business. The EU is an important market to us, particularly for the products our highly skilled colleagues manufacture in Scunthorpe, Teesside, and Skinningrove.
“We are delighted we will be able to provide the high-quality products our loyal and supportive EU customers require tariff-free and thank the UK Government for delivering this agreement.
“We now look to the future with even greater optimism as we focus on building stronger futures for our customers.”
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