European Parliament Committee Rejects Swiss Bid for Steel Tariff Exemption

EU Committee Upholds New Steel Tariff Framework

The European Parliament's International Trade Committee (INTA) has formally rejected Switzerland's appeal for an exemption from the European Union's forthcoming steel tariff regulations. The decision, made on Tuesday, January 27, 2026, underscores the EU's commitment to its new trade framework designed to protect its steel industry from global overcapacity.

The new framework, approved by 36 votes in favour, two against, and five abstentions within the INTA committee, is slated to replace the current safeguard measures expiring in June 2026. Under these revised rules, duty-free steel imports into the EU will be capped at 18.3 million tonnes per year, representing a significant 47% reduction compared to 2024 quota levels. Imports exceeding this quota will face a substantial tariff increase from 25% to 50%.

Switzerland's Arguments and Diplomatic Efforts

Switzerland has actively pursued an exemption, citing the importance of preserving 'established regional supply chains' that are crucial to the European industrial economy. The Swiss authorities, including the State Secretariat for Economic Affairs (SECO), have emphasized that Swiss steel production does not contribute to global overcapacity. They argue that their industry plays a vital role in supporting regional value chains within Europe.

In a renewed diplomatic push, an extraordinary meeting of the Joint Committee of the EU–Switzerland Free Trade Agreement was convened in Brussels on January 26 or 29, 2026, at Switzerland's request. During this meeting, Switzerland reiterated its call for special treatment in steel trade, stressing the need to minimize disruption to bilateral trade.

Limited Exemptions and Broader Context

The new EU steel trade framework explicitly limits exemptions to members of the European Economic Area (EEA), which includes Norway, Iceland, and Liechtenstein. This stance by the EU committee appears to contrast with messages conveyed to other trading partners; for instance, EU Trade Commissioner Maroš Šefčovič recently indicated that India would enjoy a 'privileged position' in negotiations on access to the EU steel market following a free trade agreement.

The EU's move is primarily aimed at shielding its domestic steel industry from the adverse effects of global overcapacity, a challenge that has led to significant import pressure in terms of both volume and price. The current WTO safeguard measures, which have been in place since 2018 and were extended until June 30, 2026, are being replaced by this new, stricter regime.