EU puts aluminium scrap duty on ice over India FTA

The European Union has abandoned plans for an export duty on aluminium scrap, citing concerns that it could hinder the signing of a free trade agreement with India. The decision, announced on September 23, allows the EU to rely on its environmental regulations to limit scrap exports instead. This move is seen as a concession to India's pressure, which accounts for about a third of EU scrap exports.

The Commission president, Ursula von der Leyen, is expected to sign the deal with Indian Prime Minister Narendra Modi in December. The EU's Environmental Directorate-General stated that the trade measure was on hold as the same goals could be achieved under the EU's Waste Shipment Regulation. However, the industry is skeptical about the effectiveness of this alternative measure, with some predicting a return to a trade duty soon.