Serbia Seeks EU Steel Tariff Exemption to Protect Its Industry
Serbia has formally requested the European Commission to exclude its steel exports from the EU’s proposed tariffs and import quotas. President Aleksandar Vučić submitted a letter to Commission President Ursula von der Leyen, calling for fair treatment of EU candidate countries.
Vučić emphasized that the new measures could harm Serbia’s steel sector, a vital part of its economy and exports. He expressed confidence that Brussels would consider the country’s candidate status and industrial challenges.
EU’s Proposed Steel Import Rules
The European Commission plans to update its safeguard system to protect the EU steel market from global oversupply. The proposal would reduce duty-free import quotas by 47%, limiting them to 18.3 million tons per year.
Imports exceeding this cap would face 50% tariffs, double the current rate. The plan also introduces a stricter “melted and poured” rule, redefining steel origin standards and affecting imports from non-EU countries.
These changes aim to stabilize the European market but could significantly impact smaller exporters like Serbia.
Impact on Serbia’s Steel Industry
In 2024, Serbia exported €556 million worth of iron and steel to the EU, marking a 9.5% decline from the previous year. The sector remains a key economic driver, producing 1.4 million tons of crude steel annually.
The country’s largest producer, HBIS Serbia, a subsidiary of China’s HBIS Group, operates with an annual capacity of 2.2 million tons of finished steel. Much of its output is sold to the EU.
If the exemption request is denied, Serbia’s exports may fall further, increasing costs and reducing competitiveness. Thousands of jobs—especially in Smederevo, where HBIS Serbia is based—could be affected.
Geopolitical and Economic Balancing
Serbia maintains complex relations with the EU, China, and Russia. While pursuing EU membership, it continues strong economic partnerships with Beijing and Moscow.
Chinese investments, such as HBIS Serbia, have strengthened local production, while Russia remains a major energy supplier. However, this dual alignment complicates Serbia’s trade and diplomatic policies.
Recently, Serbia’s parliament showed reluctance to support BRICS membership, balancing between EU integration and alternative economic alliances.
Next Steps and Possible Outcomes
The European Commission will review Serbia’s exemption request alongside feedback from other trading partners. A final decision is expected by mid-2026.
If Brussels declines the exemption, Serbian steelmakers may seek new markets in the Middle East or North Africa, though logistics and pricing could be less favorable.
Vučić reiterated that Serbia’s priority remains maintaining stable relations with the EU while ensuring fair treatment for its industries during the transition toward membership.
❓ FAQs
1. Why is Serbia requesting an EU steel tariff exemption?
To protect its steel industry, particularly HBIS Serbia, from new EU import quotas and higher tariffs that could reduce exports.
2. What changes is the EU proposing for steel imports?
The EU plans to cut duty-free quotas by 47% and impose 50% tariffs on imports exceeding the limit, aiming to control oversupply.
3. How important is steel to Serbia’s economy?
Steel is one of Serbia’s top export industries, providing thousands of jobs and generating over €500 million in annual EU trade.
4. When will the EU make a decision on Serbia’s request?
A decision is expected by mid-2026, after consultations with EU members and trade partners.
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