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The federation of steelmakers claimed that British Steel could be more easily saved if the United Kingdom was outside the European Union and warned that the turmoil of a Brexit without agreement could further harm the United States. ;industry.
UK Steel General Director Gareth Stace's intervention comes as the government faces a race against time to find a buyer for British Steel, which collapsed last week, putting 5,000 jobs and endangering thousands of others in the supply chain. .
Stace said the organization was "naturally cautious when engaging in political debates," but the industry needed to "establish the facts about our sector."
In an article written for the Guardian a few days after Brexit leader Nigel Farage blamed the EU for the difficulties faced by British Steel, Stace said: "There have been allegations in recent days about British government to use more state aid to support steel. the industry once outside the EU.
"More importantly, this does not take into account the fact that the UK steel sector has no interest in operating with the support of state subsidies (we vehemently criticize this practice in countries such as China) and neglects a number of other important technical points. "
He added that the UK would remain "prevented" from proposing bailouts after Brexit in accordance with rules established by the World Trade Organization, adding that any free trade deal signed with the EU would also include a limitation of State aid.
"I must also dispel any idea that Brexit will provide steel with greater business opportunities," Stace said.
He added that a growing list of free trade agreements signed by the EU with other countries already gave British steel producers zero tariff access to foreign buyers , a benefit threatened by Brexit.
He added that the EU has been instrumental in putting in place measures to protect producers in the region from foreign suppliers flooding the market with cheap and subsidized products.
In 2016, then-Prime Minister David Cameron and then business secretary Sajid Javid were criticized for opposing the EU's efforts to remove the rules perceived by the EU. some in the industry as offering protection against the dumping of steel by China.
"In summary, I must be honest in stating that Brexit can not realistically improve the steel industry situation, but it is likely to cause a lot of harm," Stace said.
"The number one priority for improving the outlook for steel, and the manufacturing sector in general, is to conclude a withdrawal agreement as soon as possible, putting an end to this uncertainty and avoiding the turmoil of a Brexit. without agreement. "
Labor warned that the Conservative leadership race had increased the chances of Britain leaving without an agreement, putting steel producers in greater danger.
Gill Furniss, Minister of Labor's Steel Information, said: "None of the potential leadership candidates for the Conservative party have shown any interest in defending our steel industry.
"Many of the leading candidates are determined to let the UK escape from the EU without an agreement, which would have disastrous consequences for the sector, the workers and their communities.
"Unions will act on energy costs, corporate rates and ensure that support for British steel is at the heart of our industrial strategy." We call on the government to take a public stake in British Steel to secure its long-term future. "
Stace also called for measures to help the industry that, he said, were "already in the government's gift".
They include a reduction in energy prices and "exorbitant" business rates, which he said were 10 times higher than those of competitors elsewhere in the EU.
The trade organization has previously asked the government to increase by 43% currently the amount of steel purchased from UK producers.
British Steel became insolvent last week after the government declared that it would be illegal, under the state aid rules, to accept the company's request for a loan of 30 million pounds on non-commercial terms.
The official government receiver, a government employee who oversees his insolvency, tries to find a buyer for all or part of the business and has only a few weeks to do so.
If no buyer can be found, the Scunthorpe sawmill, which employs most of the company's 5,000 people, is at risk of closure.
This site is one of two British sites that manufacture steel from scratch using a blast furnace, a process considered essential for the supply of the military and the construction sector, as well as for customers such as Network Rail, of whom 97% of the way comes from the company.
The wealthy investors behind Greybull Capital, the private equity firm that controlled British Steel during its collapse, are expected to be summoned before a board of inquiry over its failure.
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