Controversy over quotas for coated steel products exported to Europe: Trade Department decides traders should give back 27,000 tons of free quota

The Trade Department invited trade unions and steel companies on the 24th to decide to give back all the 27,000 tons of free export quota originally obtained by a certain trader to the EU. (File photo)

[Reporter Ou Xiangyi/Taipei Report] Regarding the dispute over the quota for coated steel products exported to the EU, the Trade Administration of the Ministry of Economic Affairs convened relevant industry players and the Iron and Steel Association at Sinosteel in Kaohsiung on the 24th to discuss and resolve the issue. The main conclusion of the meeting was that traders who originally obtained 20% (approximately 27,000 tons) of the free quota were given back in full, and the free quota was also reduced to 10%.

The meeting on the 24th was lengthy and full of gunpowder. The steel industry repeatedly asked why the free quota was used up in one day. Who made the decision? Since representatives from the Iron and Steel Association and the Trade Department did not respond positively, two industry players left the meeting early in anger.

However, the steel industry still highly affirms the Minister of Economic Affairs Gong Mingxin's prompt handling of the unfair treatment suffered by the industry. At the same time, they hope that a fair and transparent system for steel product export quotas can be established in the future. After all, in the current difficult industrial environment, this is an important key to the survival of the industry.

On the 25th, the Trade Department announced the results of the negotiations on the 24th in a press release that was difficult to understand and was close to the text of a court document. According to reports from participants, the conclusion is that the trader who originally took away the free quota of 27,000 tons will spit it out because the trader has used 2,000 tons. Half of the remaining 25,000 tons will be provided to relevant manufacturers and allocated based on past performance; the other half will be used as a free quota.

The Trade Department also stated that in the future, the proportion of the "free application quota" will be reduced from the original 20% to 10%. The allocation principles and procedures will maintain the current practice. The total amount will be applied equally in three times to avoid the situation where all quotas are applied for as soon as applications are opened. This is still highly questioned by the industry, "How are the three points divided?" If there are no clear regulations, it is still easy to have a black box operation like this one.