Our priorities to safeguard EU steel
By Steve Claus, Secretary General, Steel for Packaging Europe
The European Commission has committed to proposing a new measure to replace the EU’s existing steel safeguards, which will legally expire on 30 June 2026. This upcoming measure should deliver strong and effective protection against trade distortions caused by persistent global overcapacity in steel production. To shape the proposal, the Commission is conducting a targeted consultation with stakeholders across the EU steel value chain - including producers, processors, and users.
Steel for Packaging Europe, in coordination with our partners at the European Steel Industry Association Eurofer, has submitted a formal contribution to this consultation, setting out our key priorities. Our submission, which is publicly available, highlights the following:
- Urgent need for a new trade measure: A replacement must take effect from 1 January 2026 to shield the EU from the negative consequences of global overcapacity.
- Stronger, capacity-linked protection: The new framework must go further than previous safeguards, tackling structural overcapacity while avoiding excessive costs for downstream industries.
- Balanced trade design: We advocate for global Tariff Rate Quotas (TRQs) with per-country caps. This system best prevents sudden import surges from dominant exporters and avoids marginalizing smaller suppliers - weaknesses observed under the current safeguards.
- Evidence of impact: Since 2018, global overcapacity has already cost the EU 34 million tonnes in output and 90,000 jobs. With global overcapacity projected to reach 720 million tonnes by 2027, temporary measures are insufficient. A permanent, reviewable TRQ mechanism is essential to support EU decarbonisation efforts, restore investment confidence, and safeguard industrial viability.
- Timely implementation: A robust, highly effective measure must be fully operational by 1st January 2026 to ensure seamless protection once the current safeguard expires.
- Sector-specific considerations: Steel for packaging members have invested heavily in alternatives to reduce the use of substances of very high concern in their processes, in line with our legal obligations under the REACH and occupational worker protection directives. However, imports of legacy products are unchecked, offshoring the risk to workers in third countries and undermining the market for our innovations. The current safeguard is not enough to protect our innovation. Measures to restrict legacy imports could thus be enabled by a stricter safeguard quota.
- Risks of dependency on non-EU supply: Increased reliance on external suppliers for legacy products would undermine the competitiveness of Europe’s innovative steel packaging industry through:
- Threats to employment and long-term investment in EU steel packaging;
- Greater dependence on imports of critical food-grade tinplate;
- Loss of EU strategic leadership in setting global standards for sustainable, circular materials.
Conclusion: Only a strong, permanent, and adaptive trade measure can secure Europe’s steel sector against systemic global overcapacity, safeguard jobs and investment, and maintain the EU’s leadership in sustainable industrial innovation.