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Speaking with DW, Stephane Sejourne defended a new EU plan to curb steel imports with higher tariffs saying the move is vital to preserve Europe’s industrial base and protect jobs.
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00:00The European Commission is tightening its limits on steel imports, basically putting
00:0550% tariffs on shipments that exceed the quota.
00:10Brussels argues this is about protecting its own steel industry against cheap imports but
00:16also global general overcapacities.
00:19But critics say it's basically protectionism that could increase prices and also clash
00:24with Europe's own Green Deal.
00:27Joining me now is EU's Industry Commissioner, Céphane Séjourné.
00:31Thank you for your time.
00:32Merci beaucoup.
00:33So my first question is, is the European Commission with these measures effectively giving up on
00:40global free trade and giving in to protectionism?
00:44Firstly, this measure was taken because there was a need for it, and this need was documented
00:51by the Commission and necessary in order to preserve our factories.
00:56It's very easy to shut down factories and dismantle Europe's steel production apparatus.
01:02It's very difficult to rebuild it.
01:04And Member States also told us that we needed to safeguard these factories and also have
01:09European sovereignty over steel, because without steel there is no automotive sector and no
01:15defence sector.
01:17And the issue of sovereignty in steel production is crucial for the future.
01:22So for all these reasons we had to protect the market.
01:25That is part of our measures.
01:27There will be a competitiveness agenda for the sector linked to this measure.
01:31But in the meantime, to protect jobs and to protect our production sovereignty, we had to tighten
01:37the safeguard clause.
01:42How do you explain these measures to industries, European industries that rely on affordable
01:49imports?
01:50For example, the car industry.
01:52First of all, I would like to point out that some of the overproduction is subsidized.
01:57So our goal during this period is fair competition.
02:05That means that everyone should be able to produce under conditions that are roughly the
02:09same as those in Europe.
02:12And we have seen a certain amount of international overproduction with subsidies that distort prices, which is unacceptable.
02:22This is a way of correcting things.
02:24In order to correct them, we also need high-quality steel.
02:27That's what we're telling the automotive industry.
02:30That's also what we're saying to the industries that use this raw material.
02:36European steel is high-quality steel.
02:38It's steel that's also produced in accordance with European social and environmental standards,
02:46which will also provide you with a finished product, in this case a car, that will have
02:50a lower carbon footprint than one made with Chinese steel.
02:54Well, that's interesting because I think there are critics that would argue not all of the
03:00plants in Europe are that green, are that clean, and would probably argue that the tariffs
03:06would now basically stop cleaner imports from coming in, while the European Union wants to
03:12decarbonize its steel production.
03:14So how do you make sure this is not clashing with Europe's green goals?
03:18No, it's the competitiveness agenda.
03:22And part of this competitiveness agenda is the modernization of our production infrastructure.
03:28Why am I saying this?
03:29Our decarbonization requires billions of euros in planned investments, and as long as private
03:35investors in the steel industry did not have a clear view on the sector, and therefore did
03:40not have this safeguard clause as a prospect in the coming years, investments were frozen.
03:46So we will also be able to unlock investments in European steel mills to make them more competitive.
03:52This means using and purchasing electric ovens, using new technologies with innovation to produce
03:59low carbon steel in conditions that are perhaps the best in the world, in terms of our social
04:04and environmental standards.
04:06So for all these reasons, our safeguard clause mechanism will also accelerate the competitiveness
04:12of the European sector, and enable us to produce more.
04:17By producing more, we gain economies of scale.
04:20Today, we are at 70 percent of our production capacity.
04:24We need to increase European production capacity by 90 to 95 percent, and that is what will also
04:30make us more competitive.
04:33So you see, this safeguard clause is also a factor in gaining competitiveness in the sector
04:38in the coming years, in the coming months.
04:41Well, this is an interesting point, I find, because how do you make sure that these safeguards
04:48don't become permanent subsidies in disguise?
04:56Safeguards serve to put players back on a level playing field, and it is clear that the entire
05:01steel sector was engaged in unfair competition with Chinese products that were entering the
05:07market with subsidies that were unsustainable for these companies.
05:11We are simply restoring balance and protecting the European market, to guarantee European demand
05:18for Europeans in particular.
05:23European public procurement will also have the ability to include European content clauses
05:29for steel, thereby guaranteeing a certain level of demand.
05:33We also aim to introduce a green steel and low-carbon steel label in the coming months and years,
05:41in order to highlight this important aspect and create a market for low-carbon steel.
05:48In short, there are many measures that should enable us to sustain our production sites.
05:55Once again, steel is a special raw material that is closely linked to the national sovereignty
06:02of each European member state.
06:05As long as member states want to keep their production sites, there are not many other options
06:11than to work on protecting the market and working on the competitiveness of the internal market.
06:16And this is what we are doing.
06:40The situation is very clear.
06:43There are systematic circumvention measures in our trade relations.
06:49Turkey is a good example.
06:51It is a trading partner, we want to continue trading with Turkey, however, some Chinese steel
06:56is coming through Turkey and back into the European market.
07:02That is no longer possible.
07:05So we need to be able to detect these phenomena, have anti-circumvention measures
07:10in place, and to also be able to plug the gaps in this context.
07:16That is why there is no real exemption in our proposed measures to stop subsidized steel
07:21from being rerouted through other countries and re-entering the EU market.
07:26You've been talking about a bit of competitiveness and how, you know, but I still want to emphasize
07:33this point.
07:34How can we make sure that Europe becomes more competitive and that we are now not just relying
07:43on these basically tariffs or subsidies, whatever you may want to call them, depending
07:46on your viewpoint, and that we make sure that Europe becomes more competitive in this industry
07:52that you also call a very key industry?
07:54Yes, you're right.
07:57We talked about the steel sector, which is a special sector with special issues.
08:02This is probably also true of the chemical sector, which has faced conditions almost similar
08:07to those of the steel market.
08:10Nevertheless, we need a competitiveness agenda in Europe, covering all competitiveness criteria,
08:16whether it be administrative simplification or removing costly obligations to the internal
08:21market.
08:22So how we remove regulatory barriers within the internal market so that this market of
08:28450 million consumers can truly be a market that propels us forward and allows us to gain
08:34competitiveness and productivity in Europe for our companies?
08:40And then there is the whole energy issue, which is perhaps Europe's biggest problem today.
08:45If there is one factor that needs to change to make Europe more competitive, it's the price
08:50of energy.
08:51To this end, the Commission has made some urgent proposals, namely contracts between electricity
08:57producers and industrial players, contracts that provide us with guarantees that are guaranteed
09:03by public authorities, in particular with the European Investment Bank, with the support
09:08of the Commission, and that provides stable, cheaper energy prices, making our industries more competitive.
09:16Nevertheless, energy prices are a widespread problem in Europe.
09:20We need to solve this problem.
09:21We need to accelerate our transition to low-carbon energy and improve our energy production in Europe.
09:28This means decarbonizing rather than importing fossil fuels, which are expensive and very costly
09:34to use for energy production.
09:37We know when the crisis began.
09:39It began with Russian gas.
09:41And so we must also learn a lesson from this in terms of European dependence.
09:47We must produce our own electricity.
09:49We must be able to build infrastructure and construct cross-border infrastructure between us.
09:56And then we must look to the future with cheaper electricity and an industry that becomes competitive
10:02again in the long term.
10:04This is a short-term, medium-term, and long-term task.
10:09But as you understand, once the system is simplified, energy prices will fall.
10:17Issues that are also related to the competitiveness of the sector, and therefore to innovation in the sector.
10:25All these topics are on the table, and that is what we are supporting together with the Commission.
10:30So I guess my last question then, when you describe all of this, how do we measure success then, let's say in a year's time?
10:42Do we measure success in jobs, in output, in prices that have lower?
10:47What would you say is your take?
10:50On all three, obviously.
10:52On jobs, because we are going to experience a revolution, including a cultural one.
10:57And AI will probably disrupt many services and industries.
11:03It is essential to re-industrialize and therefore bring back jobs in industry in Europe.
11:10This is also what will enable us to restore the capacity of member states to offer jobs
11:16that have largely disappeared in a number of service professions.
11:19And then there is Europe's international competitiveness.
11:25We must continue to work on this.
11:28We are still competitive in certain technologies, such as aeronautics and certain cutting-edge technologies,
11:34particularly in the audio-visual sector.
11:36All these areas, along with industries such as biotech and cleantech,
11:44must once again become Europe's flagships of tomorrow.
11:48And so we must regain our export capabilities with new technologies.
11:54This also means changing our competition policy practices
11:57to allow the emergence of giants in Europe in the coming years,
12:02enabling companies to export internationally.
12:07And that means the internal market has to become a true internal market,
12:12meaning bringing regulations between member states to the same level
12:16to enable the 450 million European consumers
12:20to be the engine of growth in Europe and for our businesses,
12:24which is not the case today.
12:25There is one last figure I could give you.
12:30The IMF says that regulatory differences within Europe
12:34have the same effect as 40 to 100 percent customs duties.
12:39At a time when customs duties have become popular in the minds of our fellow citizens,
12:45and they have been hearing this expression and the word tariffs every day now for six months,
12:51since the trade war started.
12:53So you can see, there is a lot to be done in terms of regulations in Europe
12:58to reduce the equivalent of customs duties that a company has to pay to operate.
13:04We have the same thing in Germany, in Austria, France and Spain.
13:09Companies must be free to operate everywhere,
13:12and that is still a challenge, and that is what we need to address.
13:15It is still a challenge, and that is what we need to regulate.
13:19Thank you very much.
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