As the deadline to bring in new quotas looms, the senior industry source said U.K. negotiators need to get whatever tweaks they make “somewhat right to avoid really bad unintended consequences” for both domestic steelmakers and manufacturers who import.
“The cliff-edge on these plans is fast approaching so the opportunity is narrowing to avoid huge self-inflicted damage to the economy,” said William Bain, head of trade policy at the British Chambers of Commerce.
“The long-term solution must be for the government to reach an agreement on dedicated U.K. quota shares with the EU, as part of its new quota system.”
No present for the UK
British industry would like to see the government “start off with finalizing these quotas” before turning its attention to a broader steel alliance, said the first senior steel industry source quoted above.
However, the EU is wary of moving too quickly. Any announcement made with Britain must be weighed against the bloc’s relationship with its other free trade partners as it negotiates with India, Turkey, Japan and South Korea.
“We are not dealing just with the United Kingdom, but also with other FTA countries, so that is sometimes forgotten in the Westminster bubble,” said one EU diplomat. “It’s not just about the U.K., so the Commission there has to really find a very delicate balance — and, for example, Norway and Switzerland are also involved.”
Europa Monitor is a seasoned News Editor with over a decade of experience in journalism. Known for his editorial expertise and commitment to accuracy, Europa Monitor leads teams to deliver high-quality news content.
