EU Tarriffs on Chinese steel, very low.

[joe sod]

This is big issue in UK at the moment with TATA putting its huge Redcar steel plant up for sale. Basically it cannot compete with cheap chinese steel imports. The rational response to this would be very high tarriffs on chinese imports of steel. In the EU the tarriff is only 15% which is nothing, however in the US its 260%. Therefore the US is effectively protecting its domestic steel industry by shutting out chinese imports. Why is the EU not doing the same, is it because of the high dependance of the German economy on exports to China. Especially why is the UK not willing to impose its own tarriffs is it because of the huge financial services industry. In other words what is the real backround to all this. Also the Chinese have said they will impose their own tarriffs on EU imports to China even though EU tarriffs are tiny compared to US tarriffs. So why do the Chinese feel in such a powerful position and why have they flexed their muscles on this issue.

 

[Dermot]

Ironically it was apparently the UK who opposed an increase in EU tarriffs

 

[odyssey06]

Britain's energy costs are 50% higher than those in France due to their long term plan for zero emissions. I imagine they are vastly higher than the costs in China. It's a lot easier to achieve zero emissions if you outsource all your manufacturing, but what's the point?

The leader in this week's Spectator is very good on this point.

 

[Purple]

France has heavily subsidised nuclear energy. The zero emissions point is a red herring.

China produces over half of all the steel in the world and 5 times as much as the EU and 68 times as much as the UK.


Within the EU Italy produces twice as much as the UK, Germany three times as much and France and Spain slightly more.

Japan and India produce more than the USA with Asia accounting for 70% of world production.


In short what the UK does is totally irrelevant and what the EU does is almost irrelevant.

That said given that the cost of decommissioning a large steel Mill can be up to a billion pounds the UK should take a longer term view on these things.

No large economy stays strong without making things.