The Ministry of Economic Affairs lowers the proportion of free application quotas for steel products exported to Europe to 10%

The Ministry of Economic Affairs yesterday invited collectors and steel associations to discuss how to improve the management measures for steel product quotas exported to Europe. (Photo by reporter Lin Jinghua)

[Reporter Lin Jinghua/Taipei Report] The steel industry is concerned about the "free application quota" proportion and allocation method of my country's metal-coated steel plates (i.e., the 4A category of steel products exported to Europe) export management measures to the EU. The Ministry of Economic Affairs stated today (25th) that it invited collectors and steel associations yesterday to discuss how to improve it. After five hours of thorough discussion on the management measures for steel product quotas exported to Europe, the proportion of "free application quotas" was reduced from the original 20% to 10%. The allocation principles and procedures remain the current practice, and the total amount is divided into three applications on average to avoid the situation where all quotas are applied for as soon as applications are opened.

The Ministry of Economic Affairs explained at the meeting that the EU has implemented steel tariff quota defense measures since 2019 and has given trading partners specific national quotas. The domestic steel industry hopes that the government will help establish management measures, and a quota mechanism for steel products exported to Europe will be established after joint discussions between the Ministry of Economic Affairs, the Iron and Steel Association and the industry.

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The industry agrees to divide my country's national quotas into two categories: "export performance" and "free application quota". If the industry does not agree on the proportion of the two types of quotas, the "free application quota" will be set at 20%. Therefore, the Ministry of Economic Affairs will announce the adoption of quota management measures for steel products exported to the EU every year from 2019 to 2025.

On July 1, 2026, the EU will still maintain the control of steel imports in the form of tariff quotas, and will add national quotas for metal-coated steel plates. The Ministry of Economic Affairs will announce the export quota mechanism for metal-coated steel plates to the EU based on the EU steel defense measures period management mechanism. Following the mechanism established since 2019, the Iron and Steel Association will accept quota applications and allocate them in proportion.

The Iron and Steel Association explained at the meeting how to handle the review, calculation, allocation and registration of the "free application quota" of the 4A category. In accordance with the quota management regulations, the association carries out the review of qualifications and contract requirements, and then fairly calculates and allocates the applicants based on the proportion of the total number of qualified applications and then ensures registration.

Yesterday, representatives of the steel industry and traders attended the meeting. During the meeting, all parties expressed their opinions on the proportion of "free application quotas" for metal-coated steel plates, its allocation mechanism, and how to avoid the situation where the quotas are used up as soon as applications are opened.

After thorough discussions with the industry, the Ministry of Economic Affairs has reached consensus on the aforementioned issues and decided to reduce the proportion of "free application quotas" in this category by 10% from the original 20%. The allocation principles and procedures will maintain the current practice, but the total amount will be divided into three applications on average to avoid the situation where all quotas are applied for as soon as applications are opened. The Ministry of Economic Affairs emphasized that it will continue to improve relevant management measures to help my country's steel industry steadily expand the international market and maintain trade order.

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