Iran’s steel exports to Europe is now safe from punitive measures after EU governments rejected proposals to impose trade tariffs on imports from the country, said a report.

The European Commission, which sets out trade policy in the 28-member European Union, had proposed duties of up to 23 per cent for steel from Iran's Mobarakeh Steel Company (MSC), added the Fars News Agency report.

European steel lobby group Eurofer was at the centre of the campaign, which had also proposed plans to levy tariffs of up to 33 per cent on imports of hot-rolled steel from Brazil, Russia and Ukraine, it said.

But EU countries opposed the plan, with some members believing the measures were too weak while others regarded them too strong.

Eurofer’s complaint against MSC was that Iranian exports of hot-rolled steel, used in machinery and construction, to Europe had leapt to more than 1 million tonnes annually, accusing Mobarakeh of "trade distorting measures".

Europe’s tough stance, including its more than 40 restrictive measures aimed at aiding European steel producers, has already sparked accusations of protectionism from international steel exporters, added the report.