“The decision is meant to support European producers, considering the economic crisis that has affected the states of the European Union,” the analyst said, recalling similar measures taken by the United States.
The problems which companies, and not just those on the metal market, are confronted with, have lead the authorities, not only European ones, to resort to protectionism, and to enter a game with no “innocent casualties.”
“We must not forget that the Chinese authorities also have a very elaborate system, commercial barriers to protect their producers,” Williams added.
Likewise, the decision by EU members to protect steel producers is socially motivated, Alice Savovova, CEO of the Association of International Affairs, in Prague, told Business Standard. “It is a decision that I would not necessarily call populist. Steel producers are large employers. If they have problems, many people could lose their job,” Savovova said.
Taxes, between 17.7-39 percent, depending on the product category, will go into effect as of October, and will be applied over the coming five years.
