EUROMETAL is the European Federation of Steel, Metals and Tubes Distribution and Trade.
EU steel distribution and trade in EU amounts to 5 000 companies, mostly small and medium sized enterprises, giving jobs to 100 000 people.
Regarding the decision of US safeguard duties on EU steel imports, EUROMETAL would like to communicate its position and considerations regarding global steel supply chains and the role of international steel trade.
EUROMETAL POSITION ON GLOBAL STEEL SUPPLY CHAINS AND INTERNATIONAL STEEL TRADE
Developments during last months in the field of steel trade policy and steel trade cases as well as statements of latest US safeguard measures, are of nature to reassess EUROMETAL position on free and fair steel trade in the light of these developments and statements.
EUROMETAL position on WTO principles:
As embodied in the Marrakesh Agreement establishing World Trade Organization (WTO), the official primary guiding principles of free and fair trade are the following:
- Non-discrimination between WTO member trading partners and non-discrimination by a WTO member country between its own and foreign products, services and nationals.
- More open markets for all WTO members, by eliminating or lowering trade barriers such as customs duties, import bans, “buy local” provisions, selective quotas.
- Predictability and transparency regarding international trade policy, meaning no arbitrary trade measures and providing planning safety to all actors involved in international trade.
- Discouraging unfair competition, by banning unfair trade practices such as subsidizing and dumping and by promoting fair trade rules.
EUROMETAL fully supports these basic rules in order to promote global steel supply chains and international steel trade.
As we have seen especially over last decades, main customer segments of steel users are continuously developing their supply chains into a more and more global and interlinked steel supply network.
These main customer segments of main steel end use sectors are:
- Automotive
- White Goods
- Yellow Goods
- Oil & Gas Exploration and Production
- Mechanical Engineering and Chemical Industry
- Packaging
EUROMETAL is aware that global overcapacities in steel are of nature to disrupt steel trade flows, with spiraling moves towards protectionism, unfair trade practices and retaliating trade measures and, as a consequence, raising uncertainty and volatility in global steel markets.
In that line, US safeguard measures and corresponding retaliating measures are a serious blow against the optimization of global steel supply chains with heavy negative consequences for all stakeholders of the steel supply chain.