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Ministers 'blocking higher Chinese steel tariffs' | Ministers 'blocking higher Chinese steel tariffs' |
(about 1 hour later) | |
UK ministers were among the "ringleaders" blocking higher tariffs on Chinese steel, the body representing the UK steel industry has told AMs. | UK ministers were among the "ringleaders" blocking higher tariffs on Chinese steel, the body representing the UK steel industry has told AMs. |
UK Steel policy chief Dominic King also accused the EU of saying to Chinese producers "please dump here". | UK Steel policy chief Dominic King also accused the EU of saying to Chinese producers "please dump here". |
In January, Tata announced it was cutting 750 steel jobs in Port Talbot, out of more than 1,000 going in the UK. | In January, Tata announced it was cutting 750 steel jobs in Port Talbot, out of more than 1,000 going in the UK. |
Welsh Secretary Stephen Crabb said the UK government would continue to do "all it can" to help the industry. | Welsh Secretary Stephen Crabb said the UK government would continue to do "all it can" to help the industry. |
Leading figures from the steel sector were giving evidence to the assembly's enterprise and business committee on Thursday. | Leading figures from the steel sector were giving evidence to the assembly's enterprise and business committee on Thursday. |
'Wake up' | 'Wake up' |
Mr King compared a new 266% tariff on Chinese coiled steel into the United States, with a 16% tariff for Chinese imports into the EU. | Mr King compared a new 266% tariff on Chinese coiled steel into the United States, with a 16% tariff for Chinese imports into the EU. |
"We see the European Commission as not really having the teeth to deal with the flooding of Chinese exports into not just the UK, but Europe as a whole," he said. | "We see the European Commission as not really having the teeth to deal with the flooding of Chinese exports into not just the UK, but Europe as a whole," he said. |
"The UK has a perfect storm but the rest of Europe is starting to be hit as well." | "The UK has a perfect storm but the rest of Europe is starting to be hit as well." |
Economy Minister Edwina Hart told the committee that unless tariffs on Chinese steel exports were increased "we won't have the luxury of talking about steel because there won't be steel". | Economy Minister Edwina Hart told the committee that unless tariffs on Chinese steel exports were increased "we won't have the luxury of talking about steel because there won't be steel". |
"Europe's got to wake up and smell the coffee ... we've got to have an industry in Europe that produces for Europe," she said. | "Europe's got to wake up and smell the coffee ... we've got to have an industry in Europe that produces for Europe," she said. |
In February, the European Commission announced it was opening three investigations into steel products made in China, saying it would not allow "unfair competition" to threaten Europe. | In February, the European Commission announced it was opening three investigations into steel products made in China, saying it would not allow "unfair competition" to threaten Europe. |
In relation to levels of UK government support, Chris Hagg, head of external affairs for Celsa Steel, which has a major operation in Cardiff, said: "It has taken them quite a long time to come to the party." | In relation to levels of UK government support, Chris Hagg, head of external affairs for Celsa Steel, which has a major operation in Cardiff, said: "It has taken them quite a long time to come to the party." |
He welcomed the introduction of an energy compensation package from ministers at Westminster, but he also described delays by the Welsh government on changes to business rates as a "key concern". | He welcomed the introduction of an energy compensation package from ministers at Westminster, but he also described delays by the Welsh government on changes to business rates as a "key concern". |
Sanjay Tohani, director of Liberty Steel, which has re-opened a mill in Newport and is looking to create 1,000 jobs, said the outlook was "not particularly bright". | Sanjay Tohani, director of Liberty Steel, which has re-opened a mill in Newport and is looking to create 1,000 jobs, said the outlook was "not particularly bright". |
In written evidence to the committee, Welsh Secretary Stephen Crabb said: "The UK government has taken significant action in response to industry asks and will continue to do all it can in the coming weeks and months to ensure a healthy and sustainable future for the industry. | In written evidence to the committee, Welsh Secretary Stephen Crabb said: "The UK government has taken significant action in response to industry asks and will continue to do all it can in the coming weeks and months to ensure a healthy and sustainable future for the industry. |
"There is clearly more to be done and I recognise this is a vital economic issue for Wales, and will continue to work closely with the Welsh government." | "There is clearly more to be done and I recognise this is a vital economic issue for Wales, and will continue to work closely with the Welsh government." |
Analysis by Nick Servini, BBC Wales political editor | |
The committee may have been at the assembly but in reality the main issues under discussion had little to do with devolved politics. | |
At the heart of this is the attitude to trade tariffs. | |
The department for business at Westminster believes the EU could do more within the existing rules. | |
By way of defence, it says it voted in favour of anti-dumping measures twice last year and lobbied for the EU inquiry into cheap imports of reinforcing steel bar. | |
But the industry wants Britain to call for a more fundamental shift in attitude, or in the jargon scrapping the regulation called the lesser duty rule. | |
This is being resisted in Westminster because of fears that it could open the door to protectionism and retaliation from other countries: in other words a trade war. |