Trade Remedies Authority (TRA) Proposes Extension of Steel Safeguard Measures to 2026
The UK’s Trade Remedies Authority (TRA) has proposed extending steel safeguard measures on 15 products for another two years, until June 2026, amid concerns about global overcapacity. This is detailed in the official government report.
While the UK was an EU Member State, and during the transition period, UK steel imports were governed by EU safeguard measures, introduced in 2018 following US-imposed tariffs on steel and aluminium. These EU measures aimed to protect against cheap steel diverted from the US. Now, post-Brexit, the UK manages its independent trade remedies through the TRA.
The TRA investigates where UK manufacturers may suffer from unfair trade practices, such as subsidies or dumping — where goods are sold in the UK at artificially low prices. The current portfolio of cases spans several industries, including aluminium from China, biodiesel from Argentina, ceramic tiles from China, PVC from the US, and ironing boards from Türkiye — as well as 19 categories of global steel imports.
The TRA was established to operate with four founding principles: efficiency, proportionality, impartiality, and transparency. Following Brexit, the UK rolled over 43 EU-originated trade remedy measures, including the steel safeguard measure, to protect its domestic industries.
Understanding the Safeguard Measures
The safeguard is implemented through tariff rate quotas (TRQs). A TRQ allows a certain volume of steel to be imported tariff-free, with a 25% tariff applied once the quota is exceeded within a three-month period. In simple terms, once the “pot” for a product category is used up, subsequent imports in that quarter incur the safeguard tariff.
On 4 September 2023, the TRA initiated an extension review of the steel safeguard measures to assess the potential for import surges and serious injury to UK producers if protections were revoked. Under WTO rules, the safeguard may be extended for a maximum of two years beyond its current expiry on 30 June 2024.
Reviews Triggered by Port Talbot Decarbonisation
Additionally, the TRA has initiated two specific reviews in response to Tata Steel’s major production changes at Port Talbot, transitioning from blast furnaces to greener Electric Arc Furnace (EAF) technology:
- TRQ Review: Evaluates whether and how the existing steel safeguard quotas should be permanently liberalised due to market changes.
- Suspension Review: Assesses whether application of the safeguard on product category 1 should be temporarily suspended.
These reviews have been accepted based on changes in market conditions following consultations between Tata Steel and the Trade Unions regarding decarbonisation efforts at Port Talbot. Any changes to the safeguard measures will ultimately be decided by the Secretary of State, following TRA recommendations.
The remaining 14 product categories are unaffected and are being assessed as part of the broader extension review process.
Key Deadlines and Engagement Opportunities
The suspension review, TRQ review, and extension review will proceed on different timescales. However, it is critical that the extension review is completed in time to implement outcomes by 30 June 2024. If delayed, under WTO rules, the entire steel safeguard would lapse.
The TRA maintains an open and transparent dialogue with all parties, including producers, exporters, importers, and downstream users. Interested stakeholders are encouraged to register through the Trade Remedies Service by 25 February 2024.
