On July 21-23, we welcomed Karel Tachelet, Deputy Director General for International Relations and External Affairs at the European Steel Association EUROFER, to visit U. S. Steel Kosice and Bratislava. We bring you an overview of the main topics and moments from this business trip.
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We discussed the future of trade defence instruments in the EU, as the validity of the current system of safeguard measures (the so-called steel safeguard) it will end soon. EUROFER advocates a strong post-safeguard framework that would ensure stability and fairness in the European steel market. Karl Tachelet stressed the need in particular to reduce the share of steel imports on the EU market and the need to make sufficient use of domestic, European steel production capacities, to include all types of steel products under protection in order to prevent circumvention of the rules and to apply the same rules to all countries – without exceptions on the basis of free trade agreements.
CBAM as a climate tool, not just a trade shield
The CBAM mechanism was one of the main topics. Karl Tachelet has repeatedly stressed that the CBAM is first and foremost a climate instrument, not a classic trading tool. If foreign producers (e.g. from China) are able to produce so-called green steel, they will be able to export it to the EU.
That is why it is crucial for European producers to continue investing in green technologies – competitiveness in the future depends on the ability to decarbonize.
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A three-pronged approach to protecting the industry
EUROFER promotes a combined approach to protect the European steel industry:
- an improved CBAM, closing existing loopholes,
- a new and effective post-safeguard mechanism with reduced quotas,
- improved application of trade defence instruments such as anti-dumping and anti-subsidy measures.
Two-hour strategic meeting at the Ministry of Economy of the Slovak Republic
The originally planned short meeting was extended to a full-fledged two-hour discussion. Together with Karel Tachelet, the USSK team met with representatives of the Ministry of Economy of the Slovak Republic to discuss Slovakia's role in shaping the EU's industrial and trade policy. The discussion focused in particular on the need to ensure a robust post-safeguard framework to protect the steel market, ensure the competitiveness of energy-intensive industries and Slovakia's position as a constructive, pro-industrial voice at the European level. The length and factual nature of the meeting confirmed that there is a consensus between industry and the state administration on the need to protect our strategic industry while meeting climate goals.
Pleasant reception in Košice and Bratislava
In addition to professional discussions, Karl Tachelet had the opportunity to see several of our production facilities, appreciated the pleasant atmosphere of Košice and equally positively evaluated his stay in Bratislava.
Back to Brussels for further negotiations
On the way back to Brussels, Karel Tachelet was joined by Michal Pintér and Alexandra Šarinová from our Government and EU Relations team. They attended a meeting of the working group on the forthcoming opinion of the European Economic and Social Committee (EESC) on 'durable materials', together with experts from Steel for Packaging Europe (SfPE), the Permanent Materials Alliance (PMA), European Aluminium and FEVE. The common objective of the forthcoming opinion is to explain to policymakers why promoting these materials is important and to ensure that durable materials – steel, aluminium and glass – are fully recognised in European policies, including the upcoming Circular Economy Act, as key elements of the circular economy.
In the photo above (from left to right): Michal Pintér, Karl Tachelet and Alexander Zemančík
Photo: František Gregor
