Welsh steel faces drastic impact from EU tariffs, minister warns
Wales’ economy secretary has warned of drastic consequences for the future of Welsh steelmaking after the EU announced plans to slash tariff-free import quotas.
Rebecca Evans pledged to do “everything we can” to influence UK-EU talks over plans to cut the amount of tariff-free steel that can be imported into the bloc by nearly half.
Ms Evans said: “We’re extremely concerned [about] the EU’s announcement on the new tariff measures, and what they will mean for the steel industry in Wales and the UK.”
She stated Labour ministers are pressing their Westminster counterparts to engage in urgent discussions with the European Commission to ensure Welsh steel is not left behind.
Luke Fletcher, Plaid Cymru’s shadow economy secretary, criticised the “panic-mode” UK Government for being “blindsided” by the announcement.
‘Crunch time’
During today’s (October 8) topical questions in the Senedd, Mr Fletcher told the chamber: “This really is crunch time for the Welsh steel industry.
“The EU decision to almost halve tariff-free quotas for imported steel threatens to cut off access to our biggest export market, with industry leaders warning of this perhaps being the biggest crisis the UK steel sector has ever faced.”
Pointing to Labour’s pre-general election promises of a new relationship with Europe and to “move mountains for steel”, he said: “Yet, a year on for Port Talbot, here we are again.”
Mr Fletcher called for action to ensure Welsh plants, such as Port Talbot and Llanwern, are not left to bear the brunt of a tariff war between Brussels and Washington – with the EU’s move widely seen as a response to US tariffs.
“Our steel communities can’t take much more,” he said. “And there’s already a track record from the Labour UK Government of safeguarding steel plants in England.”
‘Drastic consequences’
Ms Evans replied: “The EU’s proposal clearly has the potential to have drastic consequences for the Welsh steel sector at a time when… it is already under immense trading pressure due to the US tariffs and global overcapacity.”
Labour’s David Rees, who represents the Senedd’s cross-party group on steel, urged Welsh ministers to press the case with European partners as well as UK ministers.
The Aberavon Senedd member called for Wales to have a voice in negotiations to protect the country’s interests in securing a tariff-free quota and reduced tariffs for UK steel.
Ms Evans agreed that whatever emerges must work well for Wales as well as the UK.
She pledged: “We’ll do everything we can to have the most influence we can in those discussions, setting out exactly how important this is to Wales.”
Samuel Kurtz, the Conservatives’ shadow economy secretary, warned steel products from China could flood the UK as a result of continental markets closing their doors.
‘Vulnerable’
Mr Kurtz also expressed concerns about the UK’s comparatively high electricity costs amid a transition away from blast furnaces to an electric-arc furnace at Port Talbot.
Labour’s John Griffiths, who represents Newport East – which includes the Llanwern finishing plant – warned steel is in a vulnerable position following the UK’s exit from the EU.
Ms Evans replied: “I absolutely agree it’s really important that we consider our steel sector in its entirety here in Wales and that we make sure that the decisions that are taken now by the UK Government reflect the entirety of our steel industry.
“That’s why it’s so important, as well, that we continue our discussions with the unions because they have a really good feel of the situation on the ground and they have good ideas, as well, as to how we can continue to address this issue.”
The Senedd’s economy committee will take evidence on the future of Welsh steel today, October 9, hearing from Tata Steel UK chief executive Rajesh Nair and trade unions.
By Chris Haines, ICNN Senedd reporter
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