EU Commission approves 'safeguard' tariffs

The European Commission said today it had officially approved tariffs on steel imports to protect its market from a possible …

The European Commission said today it had officially approved tariffs on steel imports to protect its market from a possible surge in imports after new US duties.

"Today the European Commission adopted safeguard measures on steel. Following the US action to severely restrict steel imports on March 20th, the EU measures are designed to prevent floods of steel imports being diverted into the EU," the Commission said in a statement.

The European Union has decided to apply tariffs from 14.9 per cent to a maximum of 26 per cent on steel imports beyond a certain quota. The measures are provisionally in place for six months.

US President George W Bush infuriated the EU by setting tariffs of up to 30 per cent on steel from Europe, Asia and Latin America to protect struggling US steel producers.

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"Unfounded, unnecessary and unfair US action has forced us to take temporary steps to look after EU industry and EU workers," EU Trade Commissioner Mr Pascal Lamy said in a statement.

"But we have done this without indulging in protectionism." The EU has said it fears a 15 million-tonne surge in imports of steel blocked from the US market by the new duties imposed by Washington.

The overall import quota for the six months of the EU measures is to be around 5.7 million tonnes.