The Trade Remedies Authority (TRA) has today (9 February 2024) initiated two reviews of the current safeguards measure on the (Category 1) steel product, Hot Rolled Flat and Coil steel.
The TRA has initiated both a suspension review and a Tariff Rate Quota (TRQ) review in response to applications from Tata Steel UK (TSUK) and Kromat Trading Ltd. Both reviews respond to TSUK's recent proposal to close its two blast furnaces in Port Talbot, Wales, as part of a transition to an electric arc furnace.
If adopted, the new production plan would significantly reduce TSUK's capacity to produce Hot Rolled Flat and Coil steel in the UK for a period and would require greater imports to meet UK demand. This would mean that the current level of duty-free TRQs for Category 1 steel would be insufficient for UK industrial needs. Additional imports required in place of reduced domestic production would face tariffs of 25% after they exceeded the current quota size - something we have already started to see happening as imports have increased.
The production plan the reviews will consider is the same as TSUK submitted to Trade Unions for formal consultation on 19 January. Given the importance to the UK economy of managing the projected reduction in domestic production of Hot Rolled Flat and Coil steel, we are carrying out the reviews in parallel with the consultation between TSUK and Trade Unions. Should the consultation result in a different production plan, the TRA would take that into account in making a recommendation to the Secretary of State for Business and Trade.
Suspension review
The suspension review applications have requested a suspension of the safeguard measure, meaning that Category 1 steel products not subject to separate anti-dumping duties would enter the UK duty free. Based on the applications and from other evidence available on the current state of the market, it is the TRA's preliminary view that the measure should be suspended. Subject to any
