Matt Shanahan (Waterford, Independent)
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10. To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the fact that coiled steel exports to mainland UK, EU and outside the EU have to go through the only two main decoiling lines in the island of Ireland in Lisburn in Northern Ireland (details supplied); the tariff situation for Irish manufacturing sectors; and if he will make a statement on the matter. [3689/21]

Leo Varadkar (Dublin West, Fine Gael)
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I believe the Deputy's question relates to the application and operation of the European Union's Safeguard Measures on steel, which have been in operation since July 2018.

As the Deputy will be aware, trade policy is a competence of the European Commission under Article 207 of the Treaty on the Functioning of the European Union, and referred to as the Common Commercial Policy. Furthermore, Ireland as part of the EU's Customs territory must apply a common external tariff to goods coming into the EU's Single Market, and this includes any tariff measures designed to defend Union interests, when required, such as the Safeguard Measures.

The EU’s Safeguard Measures for steel were initiated in July 2018 in response to the United States applying a 25% tariff on steel imports originating from 3rd countries, including the European Union. This action by the US resulted in steel originally destined for the US market being diverted to the European Union with the associated risk of flooding the EU market with steel products to the detriment of Union industry and producers.

In response, the European Commission brought forward Safeguard Measures to manage the volume of steel entering the Single Market from 3rd countries. The measures currently in place were introduced in 2018 and allow for the importation of steel from 3rd countries - by way of quotas - in line with traditional volumes of trade in steel using the 2015-2017 reference period. Steel imports outside of the quotas are subject to a 25% tariff on landing in the EU. The current measures are due to expire at the end of June 2021.

Due to the UK’s withdrawal from the European Union, as of 1st January 2021, the UK is no longer party to the EU’s measures and the UK is now a 3rd country in relation to the application of the EU’s safeguard measures. Under the EU’s safeguards, the UK - now operating as a 3rd country - has been allocated its own specific quotas for the majority of the EU’s 26 product categories subject to Safeguard Measures.

Furthermore, in anticipation of the UK’s new status as a 3rd country, in September 2020, the UK Government issued a notice to state that it would establish its own set of Safeguard Measures and transition 19 of the 26 product categories subject of EU Safeguards from the 1st January 2021. The UK has also calculated its own quota levels for imports of steel products from 3rd countries, including the EU.

It should be noted that safeguard measures are applied irrespective of whether there is a Free Trade Agreement in place with the 3rd country or not. The EU's range of Free Trade Agreements do not impact the uniform application of the Safeguard Measures. Irish importers can continue to import steel from the UK without the additional tariff of 25% if the volume of imports remain within the EU's quota allocations for the UK. Imports from the UK to Ireland or other EU Member States in excess of those quotas will attract a 25% tariff. Similarly, imports of steel from other 3rd countries into Ireland would also be subject to a 25% tariff if the exporting country exceeds the available quota.

Specifically, in relation to the Deputy's reference to Northern Ireland, the interplay between the EU’s safeguard measures and the application of the measures under the Northern Ireland Protocol is currently being carefully examined and officials in my Department and the Revenue are actively engaging with the European Commission on this matter with the view of finalising how measures should operate and apply in respect of Northern Ireland.

Finally, it is important to note that UK and EU steel can continue to be imported to NI tariff and quota free.