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UK Gears Up to Challenge EU's 47 Percent Steel Quota Cut

(MENAFN) Britain is gearing up to confront the European Union over proposals that could slash tariff-free steel import quotas by nearly half, with industry leaders warning the measures would be nothing short of catastrophic for UK producers, media reported Thursday.

Business Secretary Peter Kyle is set to put the issue squarely on the table during face-to-face talks with EU Trade Commissioner Maros Sefcovic in Brussels on Friday — a diplomatic collision that underscores the fragility of post-Brexit trade relations between London and Brussels.

At the heart of the dispute are EU proposals to overhaul its steel safeguard regime, cutting overall tariff-free steel imports from non-member countries by 47% compared with 2024 levels, effective July 1. For British steelmakers, who rely heavily on European markets as a primary export destination, the implications are severe. Industry representatives have described the proposed system as potentially "devastating" for UK producers, warning it would effectively wall off one of their most critical commercial outlets.

The row has stoked fears on both sides of the Channel that the standoff could spiral into retaliatory trade measures — a prospect that threatens to inject fresh turbulence into UK-EU relations at a moment when both sides have been actively working to stabilize ties following a series of post-Brexit reset agreements.

Steel industry representatives have pressed the British government to urgently pursue exemptions or alternative arrangements ahead of next month's deadline to shield manufacturers from mounting costs and new trade barriers.

Friday's discussions between Kyle and Sefcovic are expected to center on the severity of the quota reductions and whether last-minute adjustments remain on the table before the new regime takes effect.

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