Jason Galley, director and chief executive of the Metal Packaging Manufacturers Association (MPMA), responds to the Government’s decision to set tariff-free quotas for packaging steel in line with the sector’s recommended levels.
“The Government’s decision to refine its approach and bring packaging steel tariff-free quotas down by 62%, instead of the initially proposed 93%-cut and more in line with other sectors, is a constructive development for Metal Packaging Manufacturers Association (MPMA) members and UK-produced steel. It’s essential that MPMA members can continue to access the steel they need to deliver for their customers, to support jobs in local communities and to contribute to the UK’s wider economic and circularity ambitions.
“Access to a stable and competitively priced steel supply is essential for UK manufacturers and the Government’s decision on tariff-free quotas indicates a more nuanced understanding of the interconnected nature of the UK’s manufacturing supply chains and the pressures facing downstream sectors including metal packaging manufacturers.
“Since the steel measures were announced earlier this year, MPMA has consistently made the case that while we fully support the ambition to protect and strengthen UK steelmaking, policy must also recognise the needs of our members who rely on a combination of domestic and imported steel to operate effectively. This latest step from the Government reflects the importance of our ongoing dialogue and how considered consultation with the sector experts can result in a win-win for both the protection of domestic steel and downstream consumption, which ultimately sets the demand for packaging steel.
“MPMA members operate at the centre of the UK’s food, beverage, aerosol and industrial packaging supply chains. As we have highlighted in our engagement with policymakers and politicians, the scale of the initially proposed tariff-free quota reductions risked the offshoring of can manufacturing and filling and the substitution of UK-made steel packaging by less-circular packaging, ultimately harming the very UK-made steel it was aiming to protect. This is a sector where tariff-free quotas have historically remained stable and where supply chains and brand-owner business continuity need access to steel from more than one mill.
“Ensuring that the tariff-free system reflects the realities of downstream manufacturing has been key to avoiding unintended consequences, including cost inflation, loss of competitiveness, customers switching to less-recyclable packaging materials and the relocation of production and filling outside of the UK.
“We recognise the importance of continued dialogue to shape effective policy and MPMA will continue to work closely with the Government, our stakeholders and industry partners to help shape an approach that supports the entire value chain. A balanced, growth-focused approach is vital to safeguarding downstream manufacturing jobs, maintaining competitiveness and supporting the UK’s food security and wider economic resilience. It is encouraging to find our Government in listening mode and taking action in collaboration to achieve the best outcomes for UK PLC. We trust that we can find opportunities together for growth of the metal packaging sector.”