Spain asks Brussels, after Brexit, to limit steel imports from China

Spain asks Brussels to limit Chinese steel imports after Brexit.

The Minister of Industry, Commerce and Tourism, Reyes Maroto, sent a letter to the European Commission to request a review of the „safeguard measures„. Or temporary import restrictions.

Although the letter does not mention them openly, it refers to steel imports from China, a country that represents more than half of global production and that exports steel at prices that European producers cannot compete with, ministerial sources said.

The request, dated October 8, is addressed to the related trade commissioner, Cecilia Malmström, whose mandate ends on October 31. She will be replaced by Phil Hogan.

Maroto specifies in the letter that „the steel companies in the Union are in a difficult situation. To the extent that some production lines and factories are considering closing due to lack of demand. And competition from imports.”

Once Britain leaves the European Union, the Commission should „carry out an urgent review of safeguards. To adapt to the new situation”, requested the minister.

The letter acknowledges the review that took place on September 4 and that Spain supported, but the minister believes that Brexit makes the new analysis necessary, especially if Great Britain leaves the EU without any agreement.

Spain wants to limit steel imports

The limitation of imports of steel products is „of great interest to Spain, considering the relevance of the sector in our country and the difficulties it has encountered recently.”

During Maroto’s mandate, the steel multinational Alcoa announced that it would close two factories in Spain. The slowdown of the auto industry also affects the national steel producers.

The Spanish steel industry produced 14.3 million tons of steel in 2018. A decrease of 0.8% compared to the previous year, according to UNESID. Spanish companies exported 8.5 million tons worth almost 8 billion euros. An increase of 0.6% compared to 2017, according to the Fiscal Agency.

But imports increased by 8.6% in terms of volume (10.8 million tons) and by 13.4% in terms of value (up to EUR 8.2 billion), which led to a trade deficit for the first time in the last decade. Although the price of Spanish steel fell, it was still almost €200 more expensive than imported steel: €938 per ton compared to €758 per ton.

Article sourcehttps://elpais.com/elpais/2019/10/10/inenglish/1570699747_306197.html