IndustriAll Europe and The European Steel Association (EUROFER) welcome the decision to work on joint international efforts to address climate change and global sustainability objectives in the framework of the G7. The steel industry and its employees support a globally sustainable economy which reconciles environmental objectives with competitiveness and the creation of quality employment. A stable social dialogue, a more efficient use of energy, raw materials and resources, the reduction of greenhouse gas emissions as well as fair trade conditions are also central objectives of our industry. However this requires the establishment of the right policy framework.
Thus, with the view to global sustainability and effective climate protection the right conditions must be set, particularly in the following areas:
- Securing an international level playing field for steel by establishing fair trade conditions
In the context of high global excess steel capacity driven by China, worsened by weak steel demand growth in many countries, excess steel production is being exported to the international markets distorting traditional steel trade flows and depressing prices and profit margins. Steel industries in many countries are relying on active and supportive domestic trade policies often driven by industrial development and protection objectives such as import tariff increases, mandatory national product certification, raw material export restrictions, subsidising, local content, etc.
EUROFER and industriAll Europe call for a trade policy effectively establishing fair trade conditions for the EU steel industry by creating improved disciplines and strong enforcement to level the international playing field through:
– Unhampered and non-discriminatory access to third country markets
– Free and undistorted access to raw materials
– Effective trade defence instruments timely tackling unfair trade
China should not be granted Market Economy Status as long as the country does not meet the criteria, otherwise anti-dumping measures will become meaningless. The EU together with its major steel trade partners should closely align their regional assessments of the question of China’s Market Economy Status. Acting unilaterally would result in massive deflection of trade without any possibility of redress.
A highly qualified workforce is a prerequisite for a competitive and sustainable steel industry. Economic and employment policies must be oriented to the creation and maintenance of high-quality, sustainable jobs.
The transition to a low-carbon economy must bring about a just transition which ensures that workers affected are re-skilled and trained to re-enter the labour market and that effective social dialogue is promoted so as to guarantee that change is handled in a socially responsible manner.
This joint document is an initiative of the social partners EUROFER and industriAll Europe within the Sectoral Social Dialogue Committee on Steel.
EUROFER – the European Steel Association – represents the European steel industry with direct employment of 328 000 people and the production of 170 million tons of steel per year.
IndustriAll – the European Trade Union – represents the interests of 7 million workers in Europe from the manufacturing sectors of metal, chemical, energy, paper, mining and textiles.