Steel tariffs get pushed back

The government will probably delay its decision to impose temporary tariffs on selected steel products because the cabinet has not yet completed talks on the issue with the European Commission, the Economy Ministry said last week. Local newspapers have reported that strong criticism from the European Union, which Poland wants to join in 2004, might force the government to soften its stance or even pull out of the measures to protect its ailing steel manufacturers. "The government is now holding consultations, among others with the European Commission, but we are not pulling out of the plan," Economy Ministry spokesman Paweł Badzio said. He declined to unveil any details on the talks. Earlier the ministry said the duties, ranging from 11-36%, could be introduced by the end of July to stem a growing tide of cheap foreign products. The industry had appealed to the government for protective measures after U.S. tariffs imposed earlier this year diverted rival output to the Polish market. The European Commission's opinion appears crucial for Poland - the largest EU candidate country - to close a key competition chapter in accession negotiations in September. Local manufacturers, which suffer from low-quality products and heavy debt, are rapidly losing market share to imported goods, which accounted for nearly half of domestic sales in 2001, according to Polish Steel Chamber figures. - Reuters