Britain says EU is removing tariffs on steel under quota

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LONDON (Reuters) -Britain said the European Union will remove tariffs on key steel products under a quota system from Friday as part of a reset of ties and a recent deal to ease trade barriers.

In May, Britain agreed the most significant reset of defence and trade ties with the European Union since Brexit, which included a “bespoke arrangement” to protect UK steel exports from new EU rules and tariffs.

Britain had said the European Commission would restore its country-specific steel quota to pre-2022 levels, but had not previously specified when this would take effect.

Trade minister Jonathan Reynolds said the removal of tariffs was “yet another positive step forward for the UK steel sector” after the government intervened to save jobs at British Steel and struck a deal to avoid the highest U.S. steel tariffs.

“Restoring our steel quota helps give producers the certainty they need to compete, grow, and maintain vital export relationships,” he said.

Britain said it could export up to 27,000 tonnes of steel to the EU each quarter without paying an extra tariff under the arrangement.

Gareth Stace, director general of UK Steel, said the restoration of the quota was “excellent news”, adding companies had been “plagued by problems” shipping items like support beams.

Britain is yet to conclude negotiations with the United States after both sides agreed in May to work to eliminate steel tariffs on exports from Britain.

British steel exports to the U.S. face tariffs of 25%, and avoided an increase to 50% thanks to its U.S. agreement, but talks to remove the tariffs have stalled due to discussions over supply chains and where British steel is “melted and poured”.

(Reporting by Alistair SmoutEditing by Frances Kerry)