Steel tariff problem is caused by the protocol

And once again, many commentators, and even business representatives, seem desperate to absolve the EU of responsibility, preferring instead to imply that everything would be ok if the UK cosied-up more tightly to Brussels.

The issue this time is steel coming into Northern Ireland from GB.

The protocol means that, when the metal comes here from the rest of the UK, it is treated like an import to the EU. Back in 2018, Brussels imposed strict quotas on steel arriving in the bloc, in retaliation at Donald Trump’s decision to impose high taxes on imports to the US.

After a certain quantity of steel was traded into the EU from ‘third countries’, a tariff of 25% would apply to further imports.

This quarter, the bloc’s quota of tariff-free steel has already been exhausted, due, according to a UK Steel spokesman, to “countries like Turkey” that use more than their fair share.

Thanks to the protocol, we are covered by the EU’s tariff regime, so companies from GB are due to be subjected to duties of 25%, when they sell steel to Northern Ireland.

This situation was foreseen by the European Commission, which specifically rejected making allowances for sales to Ulster in the UK’s quota, in a judgment back in June.

The problem is created directly by Northern Ireland being treated as a part of the EU’s single market and customs union, rather than part of the UK internal market. It is exactly the kind of absurdity that the government says justifies its Protocol Bill.

Yet, the usual suspects are already lining up to blame Britain for effectively “provoking” Brussels into an unreasonable stance. How predictable and depressing. And what an indictment of pro-EU arguments.