India will gain access to 1.64 million tonnes of tariff-free steel exports to the EU under the bloc’s revised trade arrangement, amid EU efforts to curb global overcapacity and protect its steel industry.
India will receive 1.64 million tonnes of annual tariff-rate quota access for steel exports to the European Union, according to the draft text of the bloc’s new trade arrangement with New Delhi. The allocation includes 694,853 tonnes under the free trade agreement itself and 946,616 tonnes under the most-favoured-nation component, with the quotas covering a broad range of products from hot-rolled and cold-rolled sheets to pipes, tubes, rebars and stainless steel items.
The draft comes as the EU tightens its steel trade regime to counter global overcapacity. According to the European Commission’s steel measure factsheet, the bloc’s framework caps duty-free steel imports at 18.3 million tonnes a year and splits access between FTA and non-FTA partners. The Council and European Parliament struck a provisional deal in April on a replacement for the EU’s existing safeguard measures, which are due to expire, and the new system is designed to reduce import volumes and raise duties on shipments above quota.
For India, the quota is significant but still below current export levels. PTI reported that India ships about 4 million tonnes of steel a year to the EU, meaning the new terms would leave a substantial share of exports outside the preferential band. The largest country-specific allocation is for non-alloy and other alloy hot-rolled sheets and strips, at 509,605 tonnes, followed by cold-rolled sheets and metallic-coated sheets, while smaller quotas are set for organic-coated products, plates and stainless steel bars and light sections.
The text also provides for additional access in some categories and residual quotas in others, with the EU committed to administering the system in a transparent and non-discriminatory way. It says the first review will begin one year after the free trade agreement takes effect, then every five years. India and the EU announced the conclusion of negotiations on January 27 and expect the pact to be signed by the end of this year, with implementation likely next year. Separate reporting has also noted that no India-specific exemption has been granted from the EU’s carbon border levy for steel, although Indian officials have described the agreement as a work in progress.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
