As an umbrella measure, steel and aluminum might soon be classified based on where they were originally “melted and poured,” not in which country they got altered after that. This would allow the EU to tackle circumvention of existing duties on imports.
“Is it enough? History will tell,” a Commission official said, after being granted anonymity to discuss the plan candidly.
“But if we would have promised this a few years ago, no one would have believed it,” they said, referring to the Commission considering restrictions on scrap metal exports, tracking where steel is originally melted and poured, and erecting safeguards for aluminum. Those last two points are completely new measures.
Green and secure
Brussels also gave the most steel-friendly nod yet about upcoming changes to the EU’s carbon-border tax known as CBAM, which places a levy on certain imports from countries without an equivalent carbon price.
The Commission promised to expand the carbon tax to also cover specific products made from steel and aluminum — not just the basic metals. That would close what industry groups say is a loophole firms exploit to evade taxes.
Early reaction from industry was positive. “We are grateful that the Commission has clearly recognized the strategic importance of the European steel industry to the EU’s sovereignty, security, and competitiveness,” said Henrik Adam, president of steelmakers’ association Eurofer.
