Trying to get my head around what is going on here. My understanding:
The World Trade Organisation (WTO) aims for member countries:
To trade without discrimination — a country should not discriminate between its trading partners and it should not discriminate between its own and foreign products.
Trade should, as far as possible, be tariff free through negotiation.
Foreign companies, investors and governments should be confident that trade barriers (including tariffs and non-tariff barriers) should not be raised arbitrarily; tariff rates and market-opening commitments are bounded in the WTO
The UK’s Trade Remedies Authority (TRA), set up under post-Brexit reforms to advise on trade policy, investigates whether new trade remedies are needed to prevent injury to UK industries caused by unfair trading practices and unforeseen surges in imports. These remedies usually take the form of additional duties on those imports. Their work helps to create a level playing-field for UK industries.
In June 2021, the TRA told the government that nine out 19 tariffs the government had imposed on steel imports could be removed because there was no evidence that British producers were being hurt by cheap foreign imports.
With political considerations after winning “red wall” seats from Labour, and amid intensive lobbying from the steel industry, Truss launched emergency legislation to overrule the TRA. Extended for the past year after this change, the 25% taxes above a set quota are due to expire on 30 June 2022, prompting a fresh push by industry to extend them again. Labour has also pushed for an extension.
The war in Ukraine has brought into sharp focus how the TRA has been able to use its independent powers to act swiftly to consider how Russia's quotas for steel that can be imported without safeguard tariffs can be reallocated to other countries. Their aim is to ensure UK manufacturing and construction industries can still source competitively priced steel without compromising the protection afforded by the safeguard for UK steel industry.
The issue seems to be the conflict between reallocating those quotas to other countries and any proposed extension to Truss’s emergency legislation beyond the end of June expiry date.
A further complicating factors could be that international steel exporters who could take up those former Russian quotas could be Tory donors e.g Lakshmi Mitall of ArcelorMittel and would lobby against Truss's tariffs claiming that they are in breach of WTO commitment to non-discrimimination between own and foreign products.
Am I undertanding this correctly?