Dialogues Define & Defend Distribution DilemmasAt a recent Implementation Dialogue hosted by DG TAXUD, EUROMETAL President Alexander Julius stood alongside key European steelmakers, processors & industry groups to urge Brussels to modernise and simplify the EU’s rules of origin. The dialogue focused on ensuring these trade rules better reflect today’s climate goals, market realities & global supply chains. Julius noted, “Our sector faces daily complexity from overlapping rules, inconsistent national practices & digital gaps that especially burden small & medium firms.”

Strategic Synergy & Sector-Specific Simplification StressedCommissioner Maroš Šefčovič emphasised that rules must be clearer, simpler & adapted sector by sector. “Simplification and sector-specificity are crucial,” Šefčovič told participants, adding, “We need rules that can be applied on the shop floor, not just drafted in offices.” Stakeholders welcomed the promise of targeted reform, saying steel’s unique nature, from melted and poured processes to recycled content, demands bespoke regulations.

Harmonising Hurdles & Halting Hidden HasslesParticipants highlighted how inconsistent application among EU countries creates unfair barriers inside the single market. Julius stated, “A distributor shipping the same steel to France or Germany shouldn’t face different customs interpretations. Harmonised rules restore fairness & cut red tape.” Šefčovič echoed this, promising to make harmonisation a cornerstone of upcoming reforms.

Digitalisation Drives Data-Driven DefenceThe European Commission plans to anchor future reforms in technology, unveiling a European Data Hub, digital product passports & AI compliance tools. “Digitalisation is not just innovation, it’s inclusion,” Šefčovič remarked, highlighting special support to help small firms adapt. EUROMETAL stressed that tools must be interoperable across platforms, affordable & easy to integrate, especially for the thousands of SMEs that make up Europe’s steel distribution backbone.

Deflecting Derivatives & Defending DecarbonisationA critical topic was how steel derivatives could become a backdoor for circumventing trade defence measures & CBAM. Julius warned, “Without origin-based controls, derivatives risk undermining years of trade defence progress.” EUROMETAL urged the Commission to add derivative restrictions tied to product origin, to avoid cheap, high carbon imports from slipping through.

Climate-Centric Criteria & Circular CommitmentsEUROMETAL recommended aligning origin rules with CBAM & Europe’s circular economy targets. Julius explained, “Clear rules on recycled content & melted and poured criteria would help define truly green steel, boosting investment & transparency.” Participants noted that linking origin to climate policies can help prevent resource shuffling & carbon leakage.

Quotes Quantify Quest & Question QuicknessReflecting industry frustration, Julius added, “We need timely reforms, not theoretical promises. Predictable rules and digital tools will save jobs & protect the climate.” Šefčovič reassured, “We hear you, practical input from business is vital so we build solutions that work.” EUROMETAL reiterated that dialogue must become delivery, as every delay risks further unfair competition.

Next Navigations & Nurturing NegotiationsThe Commission invited detailed written proposals from all stakeholders, to shape sector-specific reforms expected later in 2025. Šefčovič closed by saying, “Help us get this right, so rules of origin work in practice, not just on paper.” EUROMETAL pledged ongoing collaboration, aiming to ensure future trade & customs frameworks protect fair trade, green steel investment & Europe’s industrial resilience.

Key Takeaways:

• EUROMETAL & steel producers urge simpler, sector-specific rules of origin & harmonisation across EU states.

• Commissioner Šefčovič promises digital product passports, AI tools & a data hub to help SMEs comply.

• New rules may restrict steel derivatives to stop them becoming loopholes undermining trade defence.