Brussels, 26 February 2021 – In response to today’s announcement by the European Commission that it will review the safeguard measures on steel, in place since 2018, a coalition of downstream users of steel is urging the Commission not to extend the measures beyond their expiry date this June.
While the COVID-19 pandemic has severely impacted manufacturing activity across all sectors in Europe during 2020, production levels are now increasing and are expected to continue to do so as the economy recovers during 2021.
As a consequence, and since the second half of 2020, companies are facing surging prices for steel products and long delivery times because of an insufficient domestic supply. Due to the safeguard measures currently in place, reduced competition from third countries means that import alternatives aimed at easing cost and lead-time pressures on European manufacturers have been limited.
The possibility of extending the safeguard measures beyond June 2021 adds to the uncertainty and adverse market conditions that steel users are currently facing.
It is in the interest of downstream users to rely on a strong and competitive EU domestic steel industry. Excessive protection will only result in an uncompetitive European steel industry, to the detriment of downstream users and final consumers. Therefore, the steel safeguard measures should expire on 30 June 2021 as foreseen.
The coalition of EU trade associations representing the interests of downstream users of steel consists of ACEA, APPLiA, CECE, CEMA, CEMEP, CLEPA, Orgalim, and WindEurope.
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Notes for editors
- The European Automobile Manufacturers’ Association (ACEA) represents the 15 major Europe-based car, van, truck and bus makers: BMW Group, CNH Industrial, DAF Trucks, Daimler, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Jaguar Land Rover, Renault Group, Stellantis, Toyota Motor Europe, Volkswagen Group, Volvo Cars, and Volvo Group.
- More information about ACEA can be found on www.acea.be or www.twitter.com/ACEA_eu.
- Contact: Cara McLaughlin, Communications Director, [email protected], +32 485 88 66 47.
- APPLiA (Home Appliance Europe) represents the home appliance industry in Europe. More information: www.applia-europe.eu or @APPLiA_Europe.
- CECE is the Committee for European Construction Equipment. More information: www.cece.eu or @CECE_Europe.
- CEMA is the European Agricultural Machinery Association. More information: www.cema-agri.org or @CEMAagri.
- CEMEP is the European Committee of Manufacturers of Electrical Machines and Power Electronics. More information: www.cemep.eu.
- CLEPA is the European association of automotive suppliers. More information: www.clepa.be or @CLEPA_eu.
- Orgalim represents Europe’s technology industries. More information: www.orgalim.eu or @Orgalim_EU.
- WindEurope is the voice of the European wind industry. More information: www.windeurope.org or @WindEurope.
About the EU automobile industry
- 14.6 million Europeans work in the auto industry (directly and indirectly), accounting for 6.7% of all EU jobs.
- 11.5% of EU manufacturing jobs – some 3.7 million – are in the automotive sector.
- Motor vehicles account for €440.4 billion in taxes in major European markets.
- The automobile industry generates a trade surplus of €74 billion for the EU.
- The turnover generated by the auto industry represents over 7% of EU GDP.
- Investing €60.9 billion in R&D annually, the automotive sector is Europe’s largest private contributor to innovation, accounting for 29% of total EU spending.