Steel Strategy offers investment certainty but end of low tarriffs

THE British Chambers of Commerce says the Government's Steel Strategy publication provides businesses with a clear vision on the government’s aims for competitiveness and resilience for this essential manufacturing building block.
Reacting to the Steel Strategy and its decision on new import quotas and tariffs from 1 July, William Bain, Head of Trade Policy at the BCC, said: "The Government's new Strategy sets a pathway for future growth in sectors, including construction, energy, and manufacturing, based on a rigorous analysis of future UK steel needs and a modern production approach.
“Implementing most of the recommendations will boost investor certainty and provide greater economic security through increased domestic production capacity.
“But the quota and tariff proposals alongside the Strategy will sound the death knell for the era of ever-lower world-wide tariffs on core manufacturing products like steel.
“Governments across the globe are now having to strike a balance between promoting home-grown production on the one hand and keeping options open for low-cost imports on the other.
“The sharply reduced import quotas on key steel goods, down by 40% from 1 July, alongside a 50% tariff-rate, bring the UK into line with the US and EU.
“They will support primary steel production in the UK, but manufacturers relying on alternative imports will feel the pinch from the summer.
“The focus must now be on reaching the right economic security agreements with key trading partners, like the US and EU. These must tackle issues of oversupply and carbonisation globally, while ensuring UK firms can still find sustainably produced steel at the lowest cost.
“The government must also help UK producers find new customers for their product.”
More information on the steel strategy can be found here.