India Secures 1.64 Million Tonnes Annual Steel Export Quota Under EU Trade Pact With FTA Benefits

New Delhi, Sep 13 - India is set to receive a country-specific tariff-rate quota (TRQ) of 1.64 million tonnes per year for exporting steel to the European Union, with 6.94 lakh tonnes under the free trade agreement, according to the preliminary draft of the pact released by the EU. This 16.41 lakh tonne quota includes 9.46 lakh tonnes under the MFN component and 6.94 lakh tonnes under the FTA.

The TRQs encompass a wide variety of steel products, such as hot-rolled sheets and strips, cold-rolled sheets, metallic-coated sheets, and stainless steel products. Currently, India exports around four million tonnes of steel annually to the EU. These quotas stem from the EU's Steel Overcapacity Regulation, implemented on July 1st to safeguard the EU's steel industry from global overcapacity.

The regulation establishes free duty quotas at 18.3 million tonnes, with a 50% duty for imports outside the quota and a melt-and-pour regime to improve transparency. The largest country-specific quota is for non-alloy and other alloy hot-rolled sheets and strips, amounting to 5.09 lakh tonnes, including 2.99 lakh tonnes under the MFN component and 2.10 lakh tonnes under the FTA.

The TRQs for steel imports into the EU from India will commence on the date the EU Steel Regulation takes effect. If the EU modifies the Product Specific Rules (PSRs) for products under the EU Steel Regulation, the EU will consult India promptly on the proposed amendment. The EU will manage the TRQs in a transparent, objective, and non-discriminatory manner, facilitating their effective use, including making pertinent information publicly available.

India will also receive extra quota volumes in product categories where it holds a country-specific quota, allocated through competition among EU FTA partners with country-specific quotas in those categories.