On 19 December 2024, the European Union (EU) notified the World Trade Organization (WTO) Committee on Safeguards that it had initiated a safeguard investigation on manganese and silicon-based alloying elements, classifiable in tariff subheadings 2804.69.00; 7202.11.20; 7202.11.80; 7202.19.00; 7202.21.00; 7202.29.10; 7202.29.90; 7202.30.00; 7202.99.30; 7202.99.80.30; and 2850.00.60.91.
The European Commission (EC) has received a request to initiate a safeguard investigation. The information analysis shows that imports of the product concerned increased from 1,3 million tonnes in 2020 to 1,6 million tonnes in mid-2024. In addition, total imports of the product concerned significantly increased in relative terms as well, i.e. from 126% to 298% in terms of production and from 71% to 83% in terms of consumption.
In addition, import prices were consistently lower than the EU industry’s sales prices, thus exerting significant pressure on the EU industry’s sales prices and resulting in negative or low-profit levels.
The increase in imports appears to result from unforeseen developments such as an increase of excess production capacity in third countries, trade measures adopted by a number of third countries in recent years and the energy crisis in the EU. With existing spare capacity of over 21 million tonnes and planned capacity increases of over 13 million tonnes worldwide, the overcapacity for the product concerned has reached unprecedented levels which cannot be absorbed by the EU, particularly in light of the closure of many markets as a result of trade defence measures adopted by several third countries in recent years.
There is also sufficient evidence showing that the volume and prices of these imports have caused or are threatening to cause serious injury to the EU industry. In particular, the evidence shows that imports of the product concerned have had, among other consequences, a negative impact on the EU producers’ production, capacity or market share.
A point of contact for the investigation and to identify the preferred means for corresponding is:
European Commission
Directorate-General for Trade
Directorate G, Unit G5
Office: CHAR 03/51
1049 Bruxelles/Brussel
BELGIQUE/BELGIË
Email address: TRADE-SAFEGUARD-ALLOYS@ec.europa.eu
What is a safeguard investigation?
A safeguard investigation seeks to determine whether increased imports of a product are causing, or are threatening to cause, serious injury to a domestic industry.
During a safeguard investigation, importers, exporters and other interested parties may present evidence and views and respond to the presentations of other parties.
A WTO member may take a safeguard action (i.e. restrict imports of a product temporarily) only if the increased imports of the product are found to be causing, or threatening to cause, serious injury.