EU industry chief: Steel tariffs 'vital' for industrial base and jobs

DW (English)

Speaking with DW, Stephane Sejourne defended a new EU plan to curb steel imports with higher tariffs saying the move is vital to preserve Europe’s industrial base and protect jobs.

Transcript

00:00The European Commission is tightening its limits on steel imports, basically putting

00:0550% tariffs on shipments that exceed the quota.

00:10Brussels argues this is about protecting its own steel industry against cheap imports but

00:16also global general overcapacities.

00:19But critics say it's basically protectionism that could increase prices and also clash

00:24with Europe's own Green Deal.

00:27Joining me now is EU's Industry Commissioner, Céphane Séjourné.

00:31Thank you for your time.

00:32Merci beaucoup.

00:33So my first question is, is the European Commission with these measures effectively giving up on

00:40global free trade and giving in to protectionism?

00:44Firstly, this measure was taken because there was a need for it, and this need was documented

00:51by the Commission and necessary in order to preserve our factories.

00:56It's very easy to shut down factories and dismantle Europe's steel production apparatus.

01:02It's very difficult to rebuild it.

01:04And Member States also told us that we needed to safeguard these factories and also have

01:09European sovereignty over steel, because without steel there is no automotive sector and no

01:15defence sector.

01:17And the issue of sovereignty in steel production is crucial for the future.

01:22So for all these reasons we had to protect the market.

01:25That is part of our measures.

01:27There will be a competitiveness agenda for the sector linked to this measure.

01:31But in the meantime, to protect jobs and to protect our production sovereignty, we had to tighten

01:37the safeguard clause.

01:42How do you explain these measures to industries, European industries that rely on affordable

01:49imports?

01:50For example, the car industry.

01:52First of all, I would like to point out that some of the overproduction is subsidized.

01:57So our goal during this period is fair competition.

02:05That means that everyone should be able to produce under conditions that are roughly the

02:09same as those in Europe.

02:12And we have seen a certain amount of international overproduction with subsidies that distort prices, which is unacceptable.

02:22This is a way of correcting things.

02:24In order to correct them, we also need high-quality steel.

02:27That's what we're telling the automotive industry.

02:30That's also what we're saying to the industries that use this raw material.

02:36European steel is high-quality steel.

02:38It's steel that's also produced in accordance with European social and environmental standards,

02:46which will also provide you with a finished product, in this case a car, that will have

02:50a lower carbon footprint than one made with Chinese steel.

02:54Well, that's interesting because I think there are critics that would argue not all of the

03:00plants in Europe are that green, are that clean, and would probably argue that the tariffs

03:06would now basically stop cleaner imports from coming in, while the European Union wants to

03:12decarbonize its steel production.

03:14So how do you make sure this is not clashing with Europe's green goals?

03:18No, it's the competitiveness agenda.

03:22And part of this competitiveness agenda is the modernization of our production infrastructure.

03:28Why am I saying this?

03:29Our decarbonization requires billions of euros in planned investments, and as long as private

03:35investors in the steel industry did not have a clear view on the sector, and therefore did

03:40not have this safeguard clause as a prospect in the coming years, investments were frozen.

03:46So we will also be able to unlock investments in European steel mills to make them more competitive.

03:52This means using and purchasing electric ovens, using new technologies with innovation to produce

03:59low carbon steel in conditions that are perhaps the best in the world, in terms of our social

04:04and environmental standards.

04:06So for all these reasons, our safeguard clause mechanism will also accelerate the competitiveness

04:12of the European sector, and enable us to produce more.

04:17By producing more, we gain economies of scale.

04:20Today, we are at 70 percent of our production capacity.

04:24We need to increase European production capacity by 90 to 95 percent, and that is what will also

04:30make us more competitive.

04:33So you see, this safeguard clause is also a factor in gaining competitiveness in the sector

04:38in the coming years, in the coming months.

04:41Well, this is an interesting point, I find, because how do you make sure that these safeguards

04:48don't become permanent subsidies in disguise?

04:56Safeguards serve to put players back on a level playing field, and it is clear that the entire

05:01steel sector was engaged in unfair competition with Chinese products that were entering the

05:07market with subsidies that were unsustainable for these companies.

05:11We are simply restoring balance and protecting the European market, to guarantee European demand

05:18for Europeans in particular.

05:23European public procurement will also have the ability to include European content clauses

05:29for steel, thereby guaranteeing a certain level of demand.

05:33We also aim to introduce a green steel and low-carbon steel label in the coming months and years,

05:41in order to highlight this important aspect and create a market for low-carbon steel.

05:48In short, there are many measures that should enable us to sustain our production sites.

05:55Once again, steel is a special raw material that is closely linked to the national sovereignty

06:02of each European member state.

06:05As long as member states want to keep their production sites, there are not many other options

06:11than to work on protecting the market and working on the competitiveness of the internal market.

06:16And this is what we are doing.

06:40The situation is very clear.

06:43There are systematic circumvention measures in our trade relations.

06:49Turkey is a good example.

06:51It is a trading partner, we want to continue trading with Turkey, however, some Chinese steel

06:56is coming through Turkey and back into the European market.

07:02That is no longer possible.

07:05So we need to be able to detect these phenomena, have anti-circumvention measures

07:10in place, and to also be able to plug the gaps in this context.

07:16That is why there is no real exemption in our proposed measures to stop subsidized steel

07:21from being rerouted through other countries and re-entering the EU market.

07:26You've been talking about a bit of competitiveness and how, you know, but I still want to emphasize

07:33this point.

07:34How can we make sure that Europe becomes more competitive and that we are now not just relying

07:43on these basically tariffs or subsidies, whatever you may want to call them, depending

07:46on your viewpoint, and that we make sure that Europe becomes more competitive in this industry

07:52that you also call a very key industry?

07:54Yes, you're right.

07:57We talked about the steel sector, which is a special sector with special issues.

08:02This is probably also true of the chemical sector, which has faced conditions almost similar

08:07to those of the steel market.

08:10Nevertheless, we need a competitiveness agenda in Europe, covering all competitiveness criteria,

08:16whether it be administrative simplification or removing costly obligations to the internal

08:21market.

08:22So how we remove regulatory barriers within the internal market so that this market of

08:28450 million consumers can truly be a market that propels us forward and allows us to gain

08:34competitiveness and productivity in Europe for our companies?

08:40And then there is the whole energy issue, which is perhaps Europe's biggest problem today.

08:45If there is one factor that needs to change to make Europe more competitive, it's the price

08:50of energy.

08:51To this end, the Commission has made some urgent proposals, namely contracts between electricity

08:57producers and industrial players, contracts that provide us with guarantees that are guaranteed

09:03by public authorities, in particular with the European Investment Bank, with the support

09:08of the Commission, and that provides stable, cheaper energy prices, making our industries more competitive.

09:16Nevertheless, energy prices are a widespread problem in Europe.

09:20We need to solve this problem.

09:21We need to accelerate our transition to low-carbon energy and improve our energy production in Europe.

09:28This means decarbonizing rather than importing fossil fuels, which are expensive and very costly

09:34to use for energy production.

09:37We know when the crisis began.

09:39It began with Russian gas.

09:41And so we must also learn a lesson from this in terms of European dependence.

09:47We must produce our own electricity.

09:49We must be able to build infrastructure and construct cross-border infrastructure between us.

09:56And then we must look to the future with cheaper electricity and an industry that becomes competitive

10:02again in the long term.

10:04This is a short-term, medium-term, and long-term task.

10:09But as you understand, once the system is simplified, energy prices will fall.

10:17Issues that are also related to the competitiveness of the sector, and therefore to innovation in the sector.

10:25All these topics are on the table, and that is what we are supporting together with the Commission.

10:30So I guess my last question then, when you describe all of this, how do we measure success then, let's say in a year's time?

10:42Do we measure success in jobs, in output, in prices that have lower?

10:47What would you say is your take?

10:50On all three, obviously.

10:52On jobs, because we are going to experience a revolution, including a cultural one.

10:57And AI will probably disrupt many services and industries.

11:03It is essential to re-industrialize and therefore bring back jobs in industry in Europe.

11:10This is also what will enable us to restore the capacity of member states to offer jobs

11:16that have largely disappeared in a number of service professions.

11:19And then there is Europe's international competitiveness.

11:25We must continue to work on this.

11:28We are still competitive in certain technologies, such as aeronautics and certain cutting-edge technologies,

11:34particularly in the audio-visual sector.

11:36All these areas, along with industries such as biotech and cleantech,

11:44must once again become Europe's flagships of tomorrow.

11:48And so we must regain our export capabilities with new technologies.

11:54This also means changing our competition policy practices

11:57to allow the emergence of giants in Europe in the coming years,

12:02enabling companies to export internationally.

12:07And that means the internal market has to become a true internal market,

12:12meaning bringing regulations between member states to the same level

12:16to enable the 450 million European consumers

12:20to be the engine of growth in Europe and for our businesses,

12:24which is not the case today.

12:25There is one last figure I could give you.

12:30The IMF says that regulatory differences within Europe

12:34have the same effect as 40 to 100 percent customs duties.

12:39At a time when customs duties have become popular in the minds of our fellow citizens,

12:45and they have been hearing this expression and the word tariffs every day now for six months,

12:51since the trade war started.

12:53So you can see, there is a lot to be done in terms of regulations in Europe

12:58to reduce the equivalent of customs duties that a company has to pay to operate.

13:04We have the same thing in Germany, in Austria, France and Spain.

13:09Companies must be free to operate everywhere,

13:12and that is still a challenge, and that is what we need to address.

13:15It is still a challenge, and that is what we need to regulate.

13:19Thank you very much.

Category

Transcript

Be the first to comment

Recommended