EU dropped aluminium scrap duty plan over India concerns, sources say
The European Union has dropped a proposed export duty on aluminum scrap. This decision was made to avoid complicating a free trade agreement with India. The EU will now use environmental rules to manage scrap exports instead of the levy. This reversal follows internal negotiations and pressure from India. The EU aims to finalize its trade deal with India in December.
The European Union scrapped its plan to impose an export duty on aluminium scrap, citing concerns over potential complications to the final signature of a free trade agreement with India, according to sources familiar with the discussions. The initiative aimed to safeguard Europe's smelting industry and promote sustainability goals, but the EU will instead rely on its environmental rules to curb scrap exports.
This decision represents a shift in the European Commission's stance, revealing internal divisions over industry protection as the U.S. tariffs reshape global trade and China ascends the value chain. The EU had initially planned to set a 15% export duty on aluminium scrap for three years, a measure that the industry had requested.
The exemption list for the duty, which included India among 91 other countries and territories, was also abandoned. India, which accounts for approximately a third of EU scrap exports, had requested relief from the planned restrictions. The Commission President, Ursula von der Leyen, is expected to sign the trade deal with Indian Prime Minister Narendra Modi in December.
Indian officials had expressed their desire for a waiver from the EU during a late June conversation. The Commission deemed the trade measure redundant, as it could be achieved through the EU's Waste Shipment Regulation. Industry experts, however, remain skeptical about the effectiveness of environmental rules in preventing the circumvention of export restrictions.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
