Trade Policies Related to Steel
The UK government is taking steps to ensure the continued growth and competitiveness of its steel industry after the expiration of the current global safeguard measure in June 2026. The measures, which aim to provide protection against unfair trade practices and sudden import surges, include a combination of import management, legislative powers, and procurement preferences.
One of the key proposals is the implementation of temporary safeguard measures to address any sudden import surges and help the industry adapt to changing trading environments following the safeguard's expiry. The government also plans to adjust import limits by slowing future increases, capping certain steel import levels, and tightening country-specific quotas to prevent cheap imports from undercutting UK steel producers while ensuring a reliable supply.
To combat unfair trade practices, the government is considering launching new laws expanding its powers to respond to such practices and shield critical sectors like steel from global turbulence. This forms part of the broader UK Trade Strategy.
The government is also inviting stakeholders from the steel supply chain to help shape the next phase of trade protections through consultations. The goal is to create a robust and competitive market that can withstand global challenges.
Another important aspect of the government's strategy is the revision of government procurement rules. From 2026, the government plans to prioritize UK-made steel for public projects, including mandatory consultation of the UK Steel Digital Catalogue and consideration of exemptions in buying policies to support UK steelmakers.
While these measures are not direct trade measures, complementary policies to reduce industrial electricity costs significantly will also aid steel industry competitiveness. From 2026, the Network Charging Compensation will rise to 90%, aligning the UK with Germany and France, saving the steel sector millions annually and supporting its broader resilience.
The UK currently applies a global safeguard measure on 14 steel product categories. The government aims to protect national interests in the steel sector and has already stated that it is seeking stakeholder views through a call for evidence on future trade measure options for the steel industry. This call for evidence is part of the process to determine appropriate trade measures post-June 2026, when the current steel safeguard measure expires.
The steel industry requires time to adapt to new trading patterns, and after the safeguard's expiry, there is a need to maintain protection for the critical UK steel industry. The government's goal is to support growth in the steel sector and ensure a level playing field for UK steel producers in the global market.
[1] HM Government. (2022). Future trade measures for the steel industry: call for evidence. [online] Available at: https://www.gov.uk/government/consultations/future-trade-measures-for-the-steel-industry-call-for-evidence
[2] HM Government. (2022). Network Charging Compensation. [online] Available at: https://www.gov.uk/guidance/network-charging-compensation
[3] HM Government. (2021). UK Trade Strategy: Enabling a Global Britain. [online] Available at: https://www.gov.uk/government/publications/uk-trade-strategy-enabling-a-global-britain/uk-trade-strategy-enabling-a-global-britain
[4] HM Government. (2021). A Green Industrial Revolution: Ten Point Plan for a Green Industrial Revolution. [online] Available at: https://www.gov.uk/government/publications/a-green-industrial-revolution-ten-point-plan-for-a-green-industrial-revolution/a-green-industrial-revolution-ten-point-plan-for-a-green-industrial-revolution
- The UK government is planning to adjust its trade policy to maintain protection for the critical steel industry, aiming to provide financial support through new laws and government procurement rules, thereby ensuring the industry's competitiveness in the global finance sector.
- As part of the UK's Trade Strategy, the government is considering launching new legislation to expand its powers in response to unfair trade practices, particularly in industries like steel, which are crucial to both the domestic market and the broader finance landscape.
