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The European Commission has allocated half of the European Union's annual tariff-free steel import quota to countries with free trade agreements (FTAs) ahead of the bloc's new steel import regime taking effect on July 1.
The implementing regulation sets aside half of the EU's annual tariff-free quota of 18.3 million tonnes exclusively for FTA partners, while the remaining half will be available to all trading partners without discrimination, including countries with FTAs.
Many of those partners will receive country-specific quotas based on their historical export volumes, according to the statement.
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The Commission said the allocation method is designed to minimize the impact on FTA partners without undermining the new rules. As a result, most preferential trading partners will see a market access reduction well below the overall 47% cut introduced under the EU's new Steel Regulation.
A significant number have also provisionally accepted their assigned quotas following discussions at the World Trade Organization (WTO), it added.
Trade Commissioner Maros Sefcovic said the implementing regulation gives businesses predictable quota rules while balancing the EU's commitments under its free trade agreements, WTO negotiations, and the need to maintain diversified steel supplies.
"With today's implementing regulation, the Commission is putting in place the practical arrangements needed to ensure that the EU's steel measure operates effectively from day one," he said. "We are providing market participants with predictability through clear and transparent quota distribution rules while applying a fair and objective methodology."
The new framework, which takes effect on July 1, limits annual tariff-free steel imports to 18.3 million tonnes and imposes a 50% duty on imports exceeding quota limits across 26 categories of steel products.
The Commission said the measures are designed to protect the EU steel industry from persistent global overcapacity and dumping while helping raise capacity utilization to 80%.
"Persistent global overcapacity in the steel sector remains a serious global problem and continues to distort international markets," the Commission said. "The measure restores fair competition in a market affected by distortions linked to overcapacity."
Steel imports accounted for about 29% of EU steel consumption in 2025, equivalent to roughly 39 million tonnes, according to the European Steel Association (EUROFER).
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