What does ‘No Deal’ Brexit mean for Steel Industry?

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11 Mar What does ‘No Deal’ Brexit mean for Steel Industry?

A ‘No-Deal’ Brexit leaves UK Steel Industry VulnerableSteel Stock

The EU has introduced a series of tariffs to prevent steel “dumping” from China, Russia and other countries.

The employers’ organisation, UK steel, said a new regime for policing this would be unlikely to be fully in place by March when the UK leaves the EU, leaving British steel vulnerable. The UK government said the industry would have “appropriate protections”.

Around 8,000 people are directly employed in the Welsh steel industry, including Tat on Deeside and more that 4,000 in Port Talbot – which is the largest steelworks in the UK. UK steel has told the UK government that steel enjoys more EU safeguarding measures than any other industry, following a crisis in the industry that saw prices plummet and job losses. Those measures have seen steel prices increase and greater job security.

UK steel said any gap in the coverage of these measures as a result of ‘No Deal’ in the Brexit negotiation would “very quickly be taken advantage of by foreign exporters and would undermine the UK steel sector at a critical time in its recovery”.

The concerns over a ‘No Deal’ Brexit are echoed by the steelworker’s union, community.

“If we leave the customs union, we are concerned the UK will have amongst the weakest trade defence systems in the world and our industry will be newly exposed to steel dumping from countries like China.”

UK steel also wants the UK government to adopt all the protection measures put in place by the EU after Brexit but is concerned about whether this is possible either legally and politically.

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