Bern has called for an extraordinary meeting with the European Commission in Brussels to discuss new EU safeguard measures on steel and iron alloy imports. Switzerland is pushing for an exemption from these measures, citing its integral role in European industrial supply chains and the non-contributory nature of its steel production to global overcapacity.
Key Takeaways
- Switzerland requested an exemption from new EU steel and iron alloy import restrictions.
- The EU's proposed measures aim to protect its steel industry from global overcapacity.
- Bern emphasizes its established regional supply chains and non-contribution to global steel oversupply.
- Swiss officials are advocating for equal treatment with European Economic Area (EWR) states.
- The EU Commission, Council, and Parliament committee currently oppose an exemption for Switzerland.
Switzerland Requests Special Treatment
Swiss authorities met with the European Commission on Thursday for an urgent session on free trade. The primary agenda item was Switzerland's demand for an exemption from the European Union's planned protective measures on metals, specifically steel and iron alloys.
The State Secretariat for Economic Affairs (SECO) confirmed that the extraordinary meeting of the Joint Committee on the Free Trade Agreement between Switzerland and the EU took place at Switzerland's request in Brussels. Discussions centered on the impact of these EU safeguard measures.
Key Steel Export Data
- In 2024, Switzerland exported approximately 500,000 tons of steel to the EU.
- This volume represented a value of about 700 million Swiss francs.
EU Justifies Protectionist Measures
The European Commission states its trade measures are necessary to shield the EU steel industry from global overcapacity. The proposed measures include a 50% reduction in existing import quotas from third countries. They also introduce higher tariffs for imports exceeding these new, smaller quotas.
This proposal was presented to the European Parliament and the Council of Member States in October 2025. It is expected to come into force by June 30, 2026, replacing current measures. Switzerland argues that these changes should not apply to its exports.
Bern's Arguments for Exemption
Switzerland has repeatedly called for an exemption. SECO highlights that its steel production does not contribute to global overcapacity. Furthermore, it stresses the importance of established regional supply chains, which are crucial for the European industrial economy.
These supply chains are often deeply integrated, making Swiss steel a vital component for numerous EU industries. Disrupting them could have unforeseen negative consequences for both sides.
"The non-restriction of established regional supply chains is of decisive importance for the European industrial economy."
Pushing for Equal Status with EWR States
Brussels currently plans to grant exceptions to countries within the European Economic Area (EWR), including Norway, Iceland, and Liechtenstein. Switzerland is actively campaigning for equal treatment with these EWR states.
Last week, the Federal Council engaged in bilateral meetings with Commission members at the World Economic Forum (WEF) in Davos, advocating for this parity. A Swiss delegation also traveled to Brussels two weeks prior to meet with EU parliamentarians, where the planned safeguard measures were a central topic of discussion.
Background on EU-Switzerland Trade
The relationship between Switzerland and the EU is governed by a series of bilateral agreements, making free trade a cornerstone of their economic ties. These discussions on steel tariffs are part of a broader, ongoing dialogue about maintaining smooth trade relations amidst evolving global economic policies.
Efforts Face Resistance
Despite Bern's persistent efforts, the desired effect has not yet materialized. Both the European Commission, the Council of Member States, and the relevant committee of the European Parliament believe that Switzerland should not receive an exception.
The EU has not yet made a final decision on this matter. For the Commission's proposal to become law, an agreement is needed from both legislative bodies: the Parliament and the Council. This decision is anticipated in the spring.
Negotiating Future Quotas
The new measures are expected to include quotas, but at half their current size. EU Trade Commissioner Maros Sefcovic stated last October that the goal is to initiate talks with "like-minded economic partners." He emphasized the Commission's desire to be "fair" with its free trade partners.
Switzerland hopes to secure the same quotas it currently enjoys. Sources in Brussels indicate that countries with free trade agreements will receive "special consideration" during negotiations. However, concrete discussions on this specific point are not yet underway.
Existing Measures and Broader Concerns
The EU already implemented safeguard measures on iron alloys in mid-November 2025. These measures affect imports from all non-EU countries, with the exception of Ukraine and certain developing nations. Switzerland had also pressed for exemptions here, citing its close bilateral ties and significant economic interdependence.
Switzerland also expressed concern regarding potential EU export restrictions on aluminum scrap. SECO clarified that these EU safeguard measures are part of the World Trade Organization (WTO) framework and the Switzerland-EU Free Trade Agreement, distinct from the broader Switzerland-EU package negotiations.
The European Commission has not responded to inquiries regarding these developments.