   
  
G/SG/N/8/EU/1/Suppl.3  
G/SG/N/10/EU/1/Suppl.17  
G/SG/N/11/EU/1/Suppl.11  
 
2 June 2023  
(23-3779) Page: 1/13 
Committee on Safeguards  Original: English  
 
  
NOTIFICATION UNDER ARTICLE 12.1(C), 12.2, 12.3 OF  
THE AGREEMENT ON SAFEGUARDS  
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 OF  
THE AGREEMENT ON SAFEGUARDS  
EUROPEAN UNION 
Certain Steel Products  
The following communication, dated and received on 2 June 2023, is being circulated at the request 
of the delegation of the European Union.  
 
_______________  
 
 
Pursuant to Articles 12.1(c) of the Agreement on Safeguards, the European Union ('the Union') 
submits a notification of proposed adjustm ents to safeguard measures following a Review 
investigation. This notification contains all pertinent information relating to the proposed 
adjustments to safeguard measures in accordance with Article 12.2 of the Agreement on Safeguards 
and an offer of cons ultations pursuant to Article 12.3 of the Agreement on Safeguards.  
1. Provide precise description of the product involved  
(1) The product concerned is certain steel products belonging to the 26 steel product categories 
listed in Annex I to this Notification.  
2. Provide precise description of the proposed measure  
Legal basis and procedure  
(2) By Commission Implementing Regulation (EU) 2 021/10291 ('the Prolongation Regulation'), 
the Commission prolonged the safeguard measure until 30 June 2024.  
(3) In recital (85) of the Prolongation Regulation, the Commission stated "with a view to 
guaranteeing that the safeguard measure remains in place o nly to the extent that it is 
necessary, the Commission will carry out a review to determine whether, on the basis of the 
circumstances at that time, the safeguard measure should be terminated by 30 June 2023 
namely after two years of prolongation".  
(4) In the  Prolongation Review Regulation, the Commission further noted that, in addition to 
assessing the possible termination of the measure by 30 June 2023 in view of the 
circumstances present at that time, it may also use this review, in case of no early 
termina tion of the measure, to update the list of developing countries subject to and 
excluded from the measure based on 2022 import data and to assess whether the level of 
liberalisation continued to be appropriate.  
 
1 Commission Implementing Regulation (EU) 2021/1029 of 24 June 2021 amending Commission 
Implementing Regulation (EU) 2019/159 to prolong the safeguard measure on imports of certain steel 
products, (OJ L 225 I, 25.6.2021, p.1).  G/SG/N/8/EU/1/Suppl.3 • G/SG/N/10/EU/1/Suppl.17 • G/SG/N/11/EU/1/Suppl.11  
 
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  (5) The Commission thus initiated a review invest igation by means of a Notice of Initiation ('the 
Notice') published in the Official Journal of the European Union on 2 December 2022.2 The 
Notice invited interested parties to provide evidence and data to determine whether it would 
be justified to termina te the measure by 30 June 2023. The Commission sought specific 
information from Union producers and users via questionnaires, which were made available 
to interested parties on the public file ('TRON')3 as well as on the European Commission's 
(DG TRADE) w ebsite.4 
(6) As in previous review investigations, the Commission devised a two -stage written procedure. 
First, parties had the possibility to send their submissions and where applicable, a reply to 
the questionnaires by 13 January 2023. The Commission made t his information available on 
the public file and interested parties had the possibility to make comments (rebuttals phase). 
The Commission subsequently made the rebuttals available in TRON.  
(7) At a later stage of the proceeding the Commission uploaded on TRO N the updated set of 
questionnaire replies from Union producers to include the most recent data available, namely 
economic indicators of the last quarter of 2022. Interested parties were given the opportunity 
to comment on the updated information.  
 
Findin gs of the Review investigation  
 
(8) As per the Prolongation Review Regulation, the safeguard measure was set to be in place 
until 30 June 2024. At that time, the Commission concluded that an increased in the volume 
of imports should the measure be terminated a s originally expected, could undermine 
significantly any meaningful economic recovery and the efforts being made by the Union 
steel industry in its process of adjustment to a higher level of imports.  
(9) Therefore, the measure could be terminated on 30 June 20 23 only if the Commission 
concluded in view of the circumstances following the Prolongation review, and on the basis 
of the evidence available (including the submissions and rebuttals received from interested 
parties in the ongoing review investigation) th at such early termination would be justified.  
(10)  Conversely, in the absence of positive evidence justifying an early termination, the measure 
would automatically continue to be in place until 30 June 2024.  
(11)  In order to carry out its assessment, the Commission examined the comments and evidence 
received from interested parties, including the questionnaire replies, and where necessary 
crosschecked the information against any other available sources that it gath ered through 
its own research as part of the investigation.  
(12)  As will be explained below, the Commission concluded that, under current circumstances, 
the early termination of the safeguard measure would not be justified.  
TRQ use  
(13)  The Commission observed that, like it had been the case since the imposition of the definitive 
safeguard measure in February 2019, certain origins exhausted TRQs in some product 
categories in the early days of a quarter also in the period assessed in this review 
investig ation. However, as confirmed in previous investigations, this fact cannot lead to the 
conclusion that the safeguard measure creates a shortage of steel for users in general. In 
this respect, the Commission noted that the claims by some interested parties r eferred to 
the exhaustion of some specific TRQs in isolation, without referring to the overall availability 
of steel outside a specific origin that may have exhausted its country -specific TRQ quickly. 
Thus, the Commission confirmed that, whilst some specif ic origins were exhausted at a given 
moment in time in certain product categories, in general terms access to other origins 
remained largely available for those product categories.  
(14)  The Commission also assessed the TRQ use and availability on a per product category basis 
to confirm the overall trend of TRQ use rates. The combined assessment unequivocally 
showed that Union users had the possibility to source free -of-duty steel from several sources 
 
2 OJ C 459, 2.12.2022, p.6.  
3 https://tron.trade.ec.europa.eu/tron/TDI  
4 https://tron.trade.ec.europa.eu/investigations/case -history?caseId=2645   G/SG/N/8/EU/1/Suppl.3 • G/SG/N/10/EU/1/Suppl.17 • G/SG/N/11/EU/1/Suppl.11  
 
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  quarter after quarter across virtually all product categories,  and that the available free -of-
duty volumes were increasing (in some cases substantially) quarter after quarter.  
(15)  In view of these facts, the Commission concluded that the claims regarding shortage of 
imported steel5 did not correspond to the data assess ed. The analysis also showed an 
increasing volume of TRQs unused across categories. Relevant data regarding the evolution 
of the market, e.g. consumption in the Union market, showed a progressive slowing down 
in the second half of 2022. Moreover, no eviden ce was provided showing that, with respect 
to the products under those exhausted TRQs, there was insufficient supply from Union 
producers.  
(16)  For these reasons, the Commission disagreed with the claims that the quick exhaustion of 
some TRQs (from some origin s) in certain categories would have led to a shortage of steel 
in the Union market.  
Changes to the US Section 232 measure  
(17)  The Commission had assessed the evolution of the US Section 232 measure in previous 
reviews and concluded that past changes in the US  Section 232 measure did not alter the 
basis underpinning the assessment regarding the risk of trade diversion.6 In the context of 
this investigation, the Commission looked into the latest developments of the US measure. 
In the first place, the Commission  observed that the US Administration did not appear to 
have intentions to remove the measure in the near future, noting that " [t]he Biden 
Administration is committed to preserving U.S. national security by ensuring the long -term 
viability of our steel and aluminum industries, and we do not intend to remove the 
Section  232 duties as a result of these disputes" .7 
(18)  Secondly, in light of the information presented by interested parties and its own analysis, 
the Commission established that the following changes t o the US 232 measure had taken 
place since the Commission last assessed this argument in the Third Review Regulation of 
June 20228: first, as of 1 June 2022, the US established a TRQ for the UK whereby certain 
volume of in -quota imports are exempted from the measure, while out -of-quota imports 
remain subject to the additional 25% duty. Second, as of 1 June 2022, the US suspended 
the measure for Ukraine temporarily.  
(19)  The analysis showed that the scope of the US Section 232 measure barely changed since 
the C ommission last assessed it in the Third Review Regulation, which showed that the US 
market continues to be heavily shielded from steel imports.  
(20)  The Commission further assessed the evolution of imports into the US market9, and 
confirmed that in overall te rms, they had gone down by -10% in 2022 as compared to 2017, 
the year prior to the imposition of the US Section 232 measure.10 As regards imports into 
the US market from those countries that are the main steel supplying countries into the 
Union, the trend is much steeper, as their combined imports fell by -27%, representing a 
reduction of over 2 million tonnes.  
(21)  Therefore, the Commission confirmed that imports into the US market continued to be 
significantly below pre -Section 232 measure levels. With the US  market still affected by the 
Section 232 measures, the Union market remains the largest steel importing market 
worldwide.  
(22)  The Commission also noted that interested parties did not provide any evidence in this 
investigation that would put into question the  Commission's findings in previous 
 
5 In addition to free -of-duty steel available from other third country sources Union users may have had 
the possibility, at least in some situations, of resorting also to steel available from Union producers.  
6 See, for instance, Section 3.5 of the Third  Review Regulation.  
7 See Statement from USTR Spokesperson Adam Hodge  of 9 December 2022:  
https://ustr.gov/a bout-us/policy -offices/press -office/press -releases/2022/december/statement -ustr-
spokesperson -adam -hodge   
8 See recitals (54) to (59) of Commission Implementing Regulation (EU) 2022/978 of 23 June 2022 
amending Implementing Regulation (EU) 2019/159 imposing  a definitive safeguard measure on imports of 
certain steel products; OJ L 167, 24.6.2022, p. 58.  
9 Source:  https://dataweb.usitc.gov/   
10 This calculation does not take into account imports into the US from the EU, as the analysis under this 
section is focused on assessing the possible trade diversion from third countries into the Union market.  G/SG/N/8/EU/1/Suppl.3 • G/SG/N/10/EU/1/Suppl.17 • G/SG/N/11/EU/1/Suppl.11  
 
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  investigations and thus, did not alter the findings of those investigations with regard to the 
risk of trade diversion into the Union market stemming from the US Section 232 measure.  
Alleged obstacles posed by the safegu ard to imports  
(23)  In this regard the Commission noted that the safeguard measure was designed in a way to 
ensure that historical trade flows would continue to enter the Union market free -of-duty. 
Such historical volumes have furthermore been progressively li beralised year after year. The 
Commission, in previous reviews of the measure, explained that interested parties active in 
the steel sector needed to adapt to the existing regulatory framework (in this case, the 
existence of a safeguard measure) when condu cting their business. The data analysed in 
this review clearly showed that there has been an increasing volume of TRQs unused quarter 
after quarter across product categories and that Union producers had generally additional 
capacity available. Therefore, t he fact that imports from one specific origin in a given 
category may have exhausted the relevant TRQ before the end of a quarter, does not mean 
that the safeguard measure has unduly restricted the ability of interested parties to source 
steel free -of-duty from other sources, including other third countries or the Union.  
(24)  Regarding delivery times, the Commission noted that the views among some interested 
parties appeared to differ regarding whether the Union delivery times were standard or 
whether they were  abnormally long. In view of the contradictory claims on this subject 
among users, and the fact that no evidence was received showing that longer than usual 
delivery times was currently a common phenomenon in the Union, the Commission 
considered that deliv ery times could not be currently regarded as a supply issue.  
(25)  Regarding steel prices, the Commission assessed the evolution of prices in the Union and in 
other major steel markets and noted that in the first quarter of 2023 prices had drastically 
decreased when compared to the peak reached in 2022. Such a decrease in prices took place 
in a context of increasing energy costs for, among others, Union steel producers. The 
Commission considered that the evolution of prices in the Union market could thus not be 
directly linked to the safeguard measure, as a comparable trend which also coincided in time 
was observed in other major steel markets. In addition, the Commission noted that the 
availability of free -of-duty TRQs throughout the period ensured that users had  generally 
alternative options to paying the 25% duty or sourcing from Union producers, thus not 
preventing relevant additional free -of-duty imports from entering the Union market.  
(26)  Therefore, the Commission concluded that the evolution of prices was showi ng a downwards 
trend towards the end of 2022, and that they had substantially decreased when compared 
to their peak earlier in 2022. Moreover, the Commission confirmed that these trends were 
also observed in other major steel markets, thus indicating that this was a rather global 
phenomenon not linked to the Union market and the safeguard measure.  
(27)  In view of the above elements, the Commission considered that interested parties did not 
demonstrate that the safeguard measure would have overall limited their ability to source 
steel free -of-duty in light of existing demand, nor have they shown how in the future that 
would be the case if the measure continued to be in place in light of forecasted demand and 
future TRQ levels.  
 
Import pressure  
(28)  The rate of TRQ use went down quarter on quarter in the period assessed. In this regard, 
the Commission considered that conclusions cannot be drawn by assessing this fact in 
isolation. This fact should be put into a context of decreasing consumption. In th is respect, 
the Commission assessed in further detail the extent of import pressure by looking at the 
total volume of imports and their share over total consumption in the same period, and by 
focusing on the TRQ use, notably those instances where country -specific TRQs by some 
origins were rapidly exhausted.  
(29)  First, regarding the overall volume of imports, the Commission noted that despite a 
slowdown in Union consumption notably in the second half of 2022, which impacted the level 
of TRQ use, imports in the year 2022 totalled 31.1 million tonnes. This constitutes the third 
highest level of imports in the last decade. In terms of market share, imports reached 19%, 
with an upwards increase towards the end of 2022 (reaching 21% in the last quarter G/SG/N/8/EU/1/Suppl.3 • G/SG/N/10/EU/1/Suppl.17 • G/SG/N/11/EU/1/Suppl.11  
 
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  of 2022). This  is the second highest market share achieved by imports in the last decade11, 
only exceeded by the share of imports in the year 2018, which also constituted the peak 
volume of imports in the last decade. Therefore, despite a reduction in the level of TRQ u se 
in a situation of lower consumption, data shows that import pressure increased and 
remained, in terms of market share, close to the historically high levels reached just before 
the adoption of a definitive safeguard measure in early 2019.  
(30)  Secondly, in e very quarter there were several country -specific TRQs which indeed were fully 
used in the early stages of a quarter. This phenomenon, which was addressed by the 
Commission in previous regulations, showed that there continued to be import pressure from 
certain origins in some product categories despite the overall availability of TRQ volumes, 
thus contributing to the increase in market share of imports in a context of decreasing 
demand.  
(31)  Lastly, and although interested parties arguing in favour of termination  did not generally 
refer to it, the Commission considers that the assessment regarding existing and future 
import pressure on the Union market cannot be done in isolation, e.g., by looking only at 
the TRQ use. Rather, it needs to be done by looking at the several existing parameters in 
the sector, also including the evolution of overcapacity. In this regard, the Commission 
observed that global overcapacity in the steel sector had further increased.  
(32)  The most recent estimates by the OECD point to additional global capacity being added. The 
OECD noted in February 2023: ' The risk of a global excess capacity crisis has increased. 
Despite declining steel demand, and a weak outlook, capacity expansions continue at a 
robust pace, often in pursuit of export markets.  The gap between global capacity and crude 
steel production surged to 632.0 mmt in 2022 from 516.9 mmt in 2021. The recent rise in 
excess capacity poses risks for the long -term health and viability of the steel industry, and 
its ability to enable economic growth and prosperity .'12 
(33)  The OECD further added: 'In 2022 alone, global steelmaking capacity increased by 32.0 
million metric tonnes (mmt) to 2463.4 mmt. To give a sense of the actual magnitudes 
involved, the increases seen in global capacity are larger than the existing capacity levels of 
some large steel -producing economies '.13  
(34)  Therefore, the Commission considers that the lower use of TRQs does not necessarily imply 
a reduction in the import pressure which could justify the termination of the me asure by 
30 June 2023  
Market outlook  
(35)  The Commission analysed multiple sources14 to obtain a good understanding of the market 
outlooks. All sources analysed presented a rather gloomy forecast for the global steel sector, 
including the Union market, for 2023 -24, pointing to high uncertainty, in particular triggered 
by Russia's unprovoked and unjustified military aggression  against Ukraine, inflation, the 
increased energy prices15, and an economic slowdown, among other factors. Most of the 
forecasts analysed a lso highlight a likely worse situation for the Union market.  
(36)  Therefore, the Commission did not consider that the current outlooks for the Union steel 
market could justify the termination of the measure by 30 June 2023.  
Analysis of questionnaire replies – Users  
 
(37)  To establish a balanced and comprehensive picture of the market situation, the Commission 
sought proactively input from users and their associations. To this end, the Commission sent 
specific questionnaires to 154 Union steel users and 19 user assoc iations that had 
 
11 For import share in the period 2013 -2017 see Table 2 of Defini tive Regulation. For import share in the 
period 2018 -2020, see Table 10 of Prolongation Regulation. The share of imports in 2021 was 18.1%.  
Source: Eurostat for imports, and industry data and questionnaire replies for consumption.  
12 OECD, Latest Developme nts in Steelmaking Capacity (17 February 2023).  
13 Ibid 
14 These sources include: OECD, World Steel Association, S&P Platts, Fitch Ratings.  
15 Regarding the evolution of energy prices and their expected price levels in the Union compared with 
historical data, see Economist Intelligence Unit: Commodities Outlook 2023 , page 3 (available upon 
subscription); and Trading Economics: https://tradingeconomics.com/commodity/eu -natural -gas. Both sources 
show that the current energy prices in the Union, while far below the peak reached in 2022, continue to be at a 
substantially higher lev el than in previous years.  G/SG/N/8/EU/1/Suppl.3 • G/SG/N/10/EU/1/Suppl.17 • G/SG/N/11/EU/1/Suppl.11  
 
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  participated in previous reviews of the measure and were thus registered in the case file. 
Other users and associations also had the possibility to respond to these questionnaires 
which were available on the European Commission's (DG TRADE ) website.  
(38)  The Commission analysed the users' questionnaire replies in light of other key parameters, 
notably the TRQ use and the market outlook. The investigation confirmed that users are 
benefitting from an ever -increasing level of duty -free TRQs (+20% i ncrease of TRQ volumes 
since 2019) which remain consistently unused across product categories. Furthermore, as of 
1 July 2023 the TRQs will be further increased by 4% (in compliance with WTO obligations 
to liberalize the measure progressively), thus benefi tting those users who want to increase 
further their volume of imports from specific origins.  
(39)  In this regard, users have not provided any evidence that the volume of TRQs (including the 
increased volumes due to liberalisation that will be added to the TRQ s as of 1 July 2023) 
together with the availability of Union -produced steel would not be adequate to fulfil their 
needs in light of existing and forecasted demand.  
 
Analysis of questionnaire replies – Producers  
 
(40)  In the investigation the Commission also sought to assess the evolution of the economic 
situation of the Union steel producers through questionnaires. The Commission received 
questionnaire replies from the three main Union steel producer associations (EUROFER, ESTA 
and CTA)16 in addition to a few additional individual replies from Union producers. The period 
for which data was provided comprised the years 2021 and 2022.  
(41)  The questionnaire replies from Union producers showed that the Union industry experienced 
an overall positive si tuation in 2021, driven notably by the post -COVID rebound in demand 
and abnormally high steel prices. The situation continued to be overall very positive in 
early 2022.  
(42)  However, throughout the rest of 2022 the economic performance of the Union industry 
deteriorated rapidly. This was due to several factors. In particular, the breakout of Russia's 
unprovoked and unjustified military aggression  against Ukraine lead to disruptions in several 
sectors, also affecting the steel market. Moreover, a spike in energy  prices led to higher 
costs of production for steelmakers, but in a context of slowing down in demand where steel 
prices decreased to face an import pressure which remained at high levels in several 
important product categories.  
(43)  The evolution of the econo mic indicators showed that Union steel consumption in 2022 
(166.1 million tonnes) decreased by more than 20 million tonnes ( -11.4%) when compared 
to 2021 (187.4 million tonnes).  
(44)  For its part, production of the Union industry decreased by -10.8% from 2021 (167.7 million 
tonnes) to 2022 (149.6 million tonnes). The level of production went down in particular in 
the second half of 2022 compared to the first half of 2022 ( -20.8%).  
(45)  Moreover, production capacity utilisation was at 76% in 2021 and it remained almo st the 
same (75%) in the Q1 (January -March) of 2022. However, as of Q2 (April -June) 2022 it 
started to decrease, reaching a very low figure of 58% in Q4 (October -December) 2022. 
Overall, production capacity utilisation decreased by 10 percentage points fro m 2021 to 
2022, standing at 65.6%.  
(46)  Furthermore, the volume of sales of Union producers in the Union market followed a 
decreasing trend from 2021 continuously until the last quarter (October -December) of 2022. 
The volume of sales decreased year -on-year by -6.4% from 68.4 million tonnes in 2021 to 
64.1 million tonnes. In relative terms, the Union producers' market share dropped from 
81,9% in 2021 to 81,3% in 2022.  
(47)  Lastly, profitability of those sales was at 9% in 2021 and it kept increasing until 14.2% in 
Q2 (April -June) of 2022. However, this positive trend reversed as of Q3 (July -September) 
2022, dropping to 3.9% and subsequently reaching a loss -making situation of -0.2% in Q4 
(October -December) of 2022. In 2022, overall, the Union industry made less than 1% profit.  
 
16 The questionnaire replies from the se associations also included the individual questionnaire replies of 
their members participating in the proceeding. Both sets of data were available in the case file (TRON).  G/SG/N/8/EU/1/Suppl.3 • G/SG/N/10/EU/1/Suppl.17 • G/SG/N/11/EU/1/Suppl.11  
 
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  (48)  Consequently, the situation of the Union industry worsened towards the end of the period 
considered, in particular due to some factors which took place in 2022, together with the 
remaining import pressure, which led the Union industry to lower i ts prices, and reduce its 
market share to remain breakeven.  
Forward -looking analysis  
(49)  Having assessed the comments from interested parties and having described the 
questionnaire replies from users and producers, including the evolution of the Union 
producer s' economic indicators, the Commission complemented this analysis with a forward -
looking assessment of the likely developments of some elements, should the measure be 
terminated by 30 June 2023. In particular, the Commission examined whether an increase 
in the volume of imports could be expected, should the measure be terminated before as 
originally expected.  
(50)  In the first place, the Commission assessed whether, as it had found in previous review 
investigations, the Union market continued to be attractive. T he information assessed by the 
Commission showed that the Union continued to be the largest steel importing market 
worldwide. In fact, its share over total world imports in 2022 increased by more than three 
percentage points when compared to the year 2021.17 This demonstrated that not only in 
overall terms the Union market continued to be the largest importing market but also that 
its leading position strengthened further in 2022.  
(51)  The Commission then assessed the attractiveness of the Union market in terms  of prices. 
The assessment showed that in terms of price levels, import prices into the Union from its 
main supplying countries were consistently higher than their export prices to other third 
markets for a large majority of their steel exports (in 50% to 81% of the total customs codes 
subject to the measure the export values to the Union were higher than to other third 
markets; on average, 69% of the customs codes concerned were sold at a higher price in 
the Union than on other third markets).18 Furthermor e, the assessment revealed that the 
Union market constituted an important relevant exporting market for these countries.19 The 
main steel supplying countries to the Union were those predominantly exhausting TRQs.  
(52)  Therefore, the Commission concluded that the Union market continued to be attractive for 
exporting countries both in terms of volume and prices.  
(53)  Then, the Commission noted that the volume of imports into the Union remained at high 
levels when compared to historical figures (last decade). The share of imports was also high 
when compared to previous levels, and close to the peak reached in 2018 prior to the 
imposition of a definitive safeguard measure.20 Furthermore, when compared to the 
consumption in the U nion market in the period 2021 -2022, which decreased by -11% ( -21.3 
million tonnes), imports went down by -8% (from 33.8 million tonnes to 31.1 million tonnes), 
while domestic sales also went down but at a higher pace, -12%. Therefore, the market 
share of imports increased despite a double -digit decrease in consumption in the Union 
market. The Commission therefore concluded that the level of import penetration in the 
Union market continued to be at high levels and that it even increased in 2022 when 
compare d to 2021 despite a reduction in consumption.  
(54)  The Commission also confirmed that  the situation in 2022 regarding global overcapacity in 
the steel sector continued to follow the same upwards trend. Therefore, and also in the 
absence of any evidence from interested parties that would demonstrate the contrary, the 
Commission concluded tha t its previous findings with regards to the effects of overcapacity 
on the market and performance of steel producers remain valid.  
 
17 See OECD Steel Market Developments, Q4 (December 2022), p. 22, table 4.  
Available at: https://www.oecd.org/industry/ind/steel -market -developments -Q4-2022.pdf   
18 Source  of raw data: Global Trade Atlas ‘GTA’. https://www.gtis.com/gta/. Figures pertaining to the 
year 2022, for exports from the main steel exporting countries to the Union, namely China, India, South Korea, 
Chinese Taipei, Türkiye (their combined exports of s teel to the Union in 2022 represented 52% of total 
imports). Figures from Russia, formerly the second largest steel exporting country to the Union, have not been 
considered since its steel exports to certain jurisdictions, including the Union market, are c urrently banned as a 
result of sanctions imposed because of its unprovoked and unjustified military aggression against Ukraine.  
19 For most of these origins the Union market represented a double -digit share of its total exports, 
reaching up to 27%.  
20 Impor ts into the Union went down by -9% in 2022 when compared to the peak reached in 2018, 
representing a reduction of – 3,2 million tonnes.  G/SG/N/8/EU/1/Suppl.3 • G/SG/N/10/EU/1/Suppl.17 • G/SG/N/11/EU/1/Suppl.11  
 
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  (55)  Likewise, the Commission concluded that in overall terms, exporting countries had not been 
able to find other outlets to com pensate for the trade volumes lost in the US and Union 
market since 2018. In fact, their total exports to other markets were generally lower than 
they were in 2018.  
(56)  In light of the above, the Commission concluded that imports into the Union would increase 
if the safeguard measure was terminated by 30 June 2023. Indeed, the evolution of imports, 
TRQ used and imports' market share in the recent period considered confirmed the 
attractiveness of the Union market and the willingness of the largest steel exporter s to obtain 
better access to the Union market, especially on some product categories.  
Conclusion  
(57)  Based on a careful analysis of the submissions and rebuttals received from interested parties 
requesting the termination of the safeguard measure by 30 June 2023, as well as of the 
questionnaire replies, as well as the conclusion reached in its forward -looking assessment 
the Commission concluded that on the basis of the current circumstances and information 
available the termination of the measure by 30 June 2 023 is not justified. Should the 
measure be terminated at this stage, the likely increase in the volume of imports could 
undermine the situation of the Union industry.  
 
Level of liberalisation  
(58)  The current liberalisation rate of the safeguard was set at an  annual rate of 4%. The 
Commission assessed in this Review investigation whether this level of liberalisation 
continued to be appropriate.  
(59)  In view of the recent negative trends in the Union steel market, the uncertainty surrounding 
the economic forecasts f or the near future in particular for the Union, and the fact that there 
were TRQs generally available throughout the period across product categories, the 
Commission considered that an increase in the level of liberalisation beyond its current rate 
was not  justified.  
(60)  Therefore, the TRQs will continue to increase by 4% as of 1 July 2023 for all product 
categories. The specific volumes for the period 1 July 2023 – 30 June 2024 (on a quarterly 
basis) are set out in Annex II to Commission Implementing Regulati on (EU) 2022/978 of 
23 June 2022.21 
(61)  In Annex II  to this Notification, the European Union included only those instances where a 
change to those volumes takes place. The only change is the result of Malaysia being subject 
to the measure in product category 9 . Since Malaysia qualified for a country -specific TRQ in 
this category due to its historical imports in the reference period of the definitive measure, 
the volume of residual TRQ is reduced by the amount of the country -specific TRQ allocated 
to Malaysia.  
 
*** 
3. Provide proposed date of introduction of the measure  
(62)  The proposed date for the entry into force of the adjustments to the measure is 1 July 2023.  
4. Provide expected duration of the measure  
(63)  The measure is expected to be in place until 30 June 2024, as for eseen by recital (85) of the 
Prolongation Regulation.  
5. For a measure with a duration of more than three years, provide the proposed 
date for the review (under Article 7.4) to be held not later than the mid -term of 
the measure, if such a date for the review has already been scheduled  
(64)  Not applicable  
 
21 OJ L 167, 24.6.2022, p.58.  
Link: https://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32022R0978&from=EN   G/SG/N/8/EU/1/Suppl.3 • G/SG/N/10/EU/1/Suppl.17 • G/SG/N/11/EU/1/Suppl.11  
 
- 9 - 
 
  6. If the expected duration is over one year, provide expected timetable for 
progressive liberalisation of the measure  
(65)  The definitive measures will be liberalised by increasing the level of the TRQ for all prod uct 
categories by 4% for the period 1 July 2023 – 30 June 2024.  
7. Provide information relating to the extension of a safeguard measure  
(66)  Not applicable  
8. Exclusion of certain countries from the scope of the definitive measure  
(67)  The Review of the definitive measure  shows that imports of certain product categories 
originating in several developing countries, based on import data of the year 2022 , meet 
the requirements of Article 9 of the WTO Agreement on Safeguards and should therefore be 
excluded (See Annex III ). 
9. Procedures relevant to the decision to apply the measure and information 
regarding procedures for prior consultations with those Members having a 
substantial interest as exporters of the product concerned  
(68)  Members having a substantial interest as exporters of  the product subject to the 
investigation that wish to consult with the European Union may make a request through the 
EU Mission in Geneva or via the case functional mailbox:  
TRADE -SAFE009 -REVIEW@ec.europa.eu   
(69)  These consultations shall be held with the European Commission services, either in person 
in Brussels, or via video -conference, during the period 5 June - 13 June 2023 . The 
European Union would advise that in their reques t for consultations WTO Members provide 
at least with two possible dates, and preferred time slots.  
 
 G/SG/N/8/EU/1/Suppl.3 • G/SG/N/10/EU/1/Suppl.17 • G/SG/N/11/EU/1/Suppl.11  
 
- 10 - 
 
  ANNEX I  
 
List of product categories subject to the Review investigation  
 
Product 
Number  Product category  
1 Non Alloy and Other Alloy Hot Rolled Sheets and Strips  
2 Non Alloy and Other Alloy Cold Rolled Sheets  
3.A 
Electrical Sheets (other than GOES)  
3.B 
4.A 
Metallic Coated Sheets  
4.B 
5 Organic Coated Sheets  
6 Tin Mill products  
7 Non Alloy and Other Alloy Quarto Plates  
8 Stainless Hot Rolled Sheets and Strips  
9 Stainless Cold Rolled Sheets and Strips  
10 Stainless Hot Rolled Quarto Plates  
12 Non Alloy and Other Alloy Merchant Bars and Light Sections  
13 Rebars  
14 Stainless Bars and Light Sections  
15 Stainless Wire Rod 
16 Non Alloy and Other Alloy Wire Rod  
17 Angles, Shapes and Sections of Iron or Non Alloy Steel  
18 Sheet Piling  
19 Railway Material  
20 Gas pipes  
21 Hollow sections  
22 Seamless Stainless Tubes and Pipes  
24 Other Seamless Tubes  
25A Large welded Tubes  
25B Large welded Tubes: others  
26 Other Welded Pipes  
27 Non-alloy and other alloy cold finished bars  
28 Non Alloy Wire  
 
  
  G/SG/N/8/EU/1/Suppl.3 • G/SG/N/10/EU/1/Suppl.17 • G/SG/N/11/EU/1/Suppl.11  
 
- 11 - ANNEX II  
 
Volumes of tariff –rate quotas  
 
Product 
Number  Product 
category  CN Codes  Allocation by country 
(Where Applicable)  Year 6  Additional 
duty rate  From 
1.7.2023 to 
30.9.2023  From 
1.10.2023 to 
31.12.2023  From 
1.1.2024 to 
31.3.2024  From 
1.4.2024 to 
30.6.2024  
Volume of tariff quota (net tonnes)  
9 Stainless 
Cold Rolled 
Sheets and 
Strips  7219 31 00, 7219  32 10, 
7219 32 90, 7219  33 10, 
7219 33 90, 7219  34 10, 
7219 34 90, 7219  35 10, 
7219 35 90, 7219  90 20, 
7219 90 80, 7220  20 21, 
7220 20 29, 7220  20 41, 
7220 20 49, 7220  20 81, 
7220 20 89, 7220  90 20, 
7220 90 80 Korea, Republic of  49 549,16  49 549,16  49 010,58  49 010,58  25% 
Chinese Taipei  45 948,59  45 948,59  45 449,15  45 449,15  25% 
India 30 710,50  30 710,50  30 376,69  30 376,69  25% 
South Africa  26 723,10  26 723,10  26 432,63  26 432,63  25% 
United States  24 986,11  24 986,11  24 714,52  24 714,52  25% 
Türkiye  20 791,56  20 791,56  20 565,57  20 565,57  25% 
Malaysia  13 172,38  13 172,38  13 029,20  13 029,20  25%  
Other countries  52 837,87  52 837,87  52 263,55  52 263,55  25%  
  G/SG/N/8/EU/1/Suppl.3 • G/SG/N/10/EU/1/Suppl.17 • G/SG/N/11/EU/1/Suppl.11  
 
- 12 - Volumes of global and residual tariff –rate quotas p er trimester  
 
Product Number  Allocation by country (Where 
Applicable)  Year 6  
From 1.7.2023 to 
30.9.2023  From 1.10.2023 to 
31.12.2023  From 1.1.2024 to 
31.3.2024  From 1.4.2024 to 
30.6.2024  
Volume of tariff quota 
(net tonnes)  Volume of tariff quota 
(net tonnes)  Volume of tariff quota 
(net tonnes)  Volume of tariff quota 
(net tonnes)  
9 Other countries  52 837,87  52 837,87  52 263,55  52 263,55  
 
   
  G/SG/N/8/EU/1/Suppl.3 • G/SG/N/10/EU/1/Suppl.17 • G/SG/N/11/EU/1/Suppl.11  
 
- 13 - ANNEX III  
 
List of product categories originating in developing countries to which the definitive measures apply  
 
    List of product categories originating in developing countries to which the definitive measures apply  
Country / Product group  1 2 3A 3B 4A 4B 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 24 25A 25B 26 27 28 
Argentina            X X                                 X   X       
Brazil  X X       X X                                 X   X       
China    X X X   X X X X X X X X   X X     X X   X X X X X X X X 
Egypt  X         X X             X     X                 X       
India X X   X X X X X X X X X X   X X X X     X   X X   X X     
Indonesia            X X   X X X           X                 X       
Kazakhstan            X X                         X           X       
Malaysia            X X       X           X                 X       
Mexico            X X                                 X   X       
Moldova            X X             X     X                 X       
North Macedonia            X X   X       X               X X       X X     
Oman            X X             X                       X       
Türkiye  X X X   X X X X   X X   X X     X X   X X X     X X X X X 
Ukraine22 X X       X X   X         X     X       X X X X   X   X X 
United Arab Emirates            X X                     X X   X     X   X       
Vietnam  X     X X X X       X                             X X     
All other developing countries            X X                                     X       
 
__________  
 
22 These TRQs are not applicable to Ukraine. Please see recital (9) of Third Rev iew Regulation . 