Tariffs on steel from China and other countries will be extended for two years, the UK government has announced, a despite the move potentially breaking World Trade Organisation (WTO) rules.
International Trade Secretary Anne-Marie Trevelyan also said the plans to protect British steel producers depart from the UK’s “international legal obligations” but are in the “national interest”.
The minister pulled out of a select committee appearance on Wednesday morning to tell the Commons that the UK would be extending protections for five types of steel products.
Following Brexit, the UK has rolled over European Union quotas and tariffs on 10 categories of steel, until mid-2024.
The Government has now decided to extend temporary safeguards on five other categories until the same date.
Ms Trevelyan told MPs she had considered a report by the Trade Remedies Authority into the matter and concluded “there would be serious injury or the threat of serious injury to UK steel producers if the safeguards on the five additional categories of steel were to be removed at this time”.
She added: “Given the broader national interest significance of this strategic UK industry and the global disruptions to the energy markets and supply chains that the UK currently faces, we have concluded that it is in the economic interest of the UK to maintain these safeguards to reduce the risk of material harm if they were not maintained.
“I am therefore extending the measure on the five steel categories for a further two years until June 30, 2024, alongside the other 10 categories.
“This means the safeguard will remain in place on all 15 categories, updated from July 1 to reflect recent trade flows.”
UK Steel Director General, Gareth Stace said: "The decision to maintain the UK’s steel safeguard in full once again shows that the Government is backing Britain’s steel industry."
He added: "Steel is an industry that is fundamental to the challenges we face today. It is vital to our defence and infrastructure requirements, central to our levelling up ambitions, and indispensable in our transition to net-zero. Steel is at the heart of the UK’s ability to maintain a strong and strategically independent economy. Today’s decision on safeguards provides our steelmakers with the stability required to plan, invest and work with the Government on the major challenges we now face – not least the decarbonisation of the industry."
The move was also welcomed by Alasdair McDiarmid, of the Community trade union, which represents steelworkers.
He said: "The decision to extend the steel safeguards is hugely welcome and extremely important. Government made the right call because giving up our safeguards, when the EU and US are maintaining theirs, would leave us exposed to import surges threatening thousands of jobs.
"A fair trading environment is crucial to securing the huge investments our industry needs, but it is far from sufficient. Steelworkers are urging Government to give us the competitive energy prices, and decarbonisation support, that our EU competitors enjoy and we need for a sustainable future."
