By Edith Hancock
The European Union will limit the amount of tariff-free steel its member states can import from Wednesday, part of officials' efforts to protect the bloc's steel industry from overcapacity.
The new system would set tariff-free steel import volumes at 18.3 million metric tons, while tariffs above that quota are raised to 50% from a previous 25%. The European Commission said on Tuesday that half of that 18.3 million ton quota is set aside for countries with free-trade agreements with the EU.
It also requires exporters to outline where melting and pouring to produce steel took place to make it easier to trace imports.
"We are providing market participants with predictability through clear and transparent quota distribution rules, while applying a fair and objective methodology," Maros Sefcovic, the bloc's top trade negotiator, said Tuesday.
The EU is seeking to safeguard its steel sector from a glut of products in the market, which the commission said currently sits at 620 million metric tons.
Write to Edith Hancock at edith.hancock@wsj.com