{"text":[[{"start":8.1,"text":"The EU is increasing tariffs on steel to protect its ailing industry in a move that has raised tensions with trading partners including China."}],[{"start":15.75,"text":"Brussels is implementing a previously announced 50 per cent tariff on almost half its steel imports, hitting countries with which it has free trade agreements."}],[{"start":24.95,"text":"It has distributed tariff-free quotas from July 1 for 18.3mn tonnes, granting higher-than-proportionate quotas for FTA partners, in a move it claims is in line with WTO rules."}],[{"start":37.35,"text":"“We are providing market participants with predictability through clear and transparent quota distribution rules, while applying a fair and objective methodology,” Maroš Šefčovič, EU trade commissioner, said."}],[{"start":51.35,"text":"However, a senior EU official conceded that the decision to slash quotas and double the tariff to 50 per cent had caused tension with key EU trade partners during negotiations with Brussels over compensation for the move."}],[{"start":65.75,"text":"Under Article XXVIII of the General Agreement on Tariffs and Trade (Gatt) countries are entitled to equal compensation for the injury caused by a change to tariff rates, with Japan, South Korea and the UK all significantly impacted. It was “not an easy conversation”, the EU official added."}],[{"start":83.4,"text":"Allocating duty-free quotas was the main compensation offered so far, they said."}],[{"start":88.2,"text":"“The approach strikes a careful balance between our FTA commitments, the Article XXVIII negotiations in the WTO and the need to maintain diversified supply,” Šefčovič added. “The constructive progress made with our trading partners also shows that the EU’s WTO-compliant approach is effective in practice.”"}],[{"start":108.15,"text":"The EU confirmation came a week after the UK finalised the details of its own scheme to cut tariff-free steel quotas by 51 per cent and double tariffs to 50 per cent, in effect matching Brussels and aligning with similar moves by the US and Canada."}],[{"start":126.80000000000001,"text":"The countries have repeatedly warned of the impact of a global glut of steel, the majority of which comes from China. Global excess capacity is set to exceed 720mn tonnes by 2027, according to the OECD. "}],[{"start":140.85000000000002,"text":"The senior EU official said the bloc was hoping to form a joint “steel club” with other advanced economies including the US to reduce barriers between each other."}],[{"start":151.15000000000003,"text":"But he said it was vital to cut imports after the US increased its steel tariffs to 50 per cent, deflecting exports from Asia to the EU."}],[{"start":160.00000000000003,"text":"“They have built a wall. Steel is hitting that wall and coming back to our market,” said the official."}],[{"start":166.55000000000004,"text":"He said the bloc had to fight “structural overcapacity driven by non-market policies and practices”, usually used as a reference to China, which has hugely increased steelmaking despite sluggish market growth."}],[{"start":179.85000000000005,"text":"“Our capacity has gone down but we have seen capacity go up in other parts of the world. Our industry has been struggling to face these challenges,” the official said."}],[{"start":189.60000000000005,"text":"EU steelmakers made 18,000 job cuts in 2024, according to trade body Eurofer, adding to the 90,000 laid off since 2008."}],[{"start":201.25000000000006,"text":"Steel imports have doubled since 2012-13 and exports to the US have fallen since Donald Trump’s 50 per cent levies."}],[{"start":209.60000000000005,"text":"The EU measure sets tariff-free quotas for 18.3mn tonnes per year, introducing an out-of-quota duty of 50 per cent for 26 categories of steel products."}],[{"start":222.35000000000005,"text":"It also introduces a US-style traceability requirement to avoid China shipping its steel via third countries. Companies will need to provide information on where the ‘melt and pour’ stage of the imported steel production takes place."}],[{"start":237.65000000000006,"text":"Some 80 per cent of EU imports of steel come from FTA partners. Those who have agreed to the new regime will get an average of 66 per cent of their historic exports in quotas, a second official said."}],[{"start":250.20000000000007,"text":"Countries without an FTA or a deal, such as China, will only get about 31 per cent of their historic quota on average."}],[{"start":257.9000000000001,"text":"EU member states need to endorse the proposal, which takes effect on July 1."}],[{"start":270.25000000000006,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1782817107_5331.mp3"}