India gains wider EU steel access, but carbon levy remains
NEW DELHI: India will be able to export up to 1.64 million metric tons of steel a year to the European Union under a free trade agreement, but exporters will still face carbon-related costs, according to the legal text of the pact. The agreement provides India with an additional preferential quota of 694,853 tons of steel, on top of an existing 946,616 ton WTO quota. The combined quota is…
India has secured a wider access to the European Union's steel market through a newly signed free trade agreement, according to the legal text of the pact. The agreement grants India an additional preferential quota of 694,853 metric tons of steel, in addition to its existing 946,616 ton WTO quota. This combined quota represents approximately 68.4% of India's projected 2.4 million tons of steel exports to the EU in 2025, compared to 39.4% under the current quota arrangement.
However, shipments exceeding the quota will still face a 50% tariff from the EU. The preferential quota, which does not exempt Indian steel from the EU's Carbon Border Adjustment Mechanism, will become operational once the India-EU FTA enters into force by the end of the year. Most of India's quota allocation is earmarked for flat-steel products, with hot-rolled sheets and strips receiving the largest share of 509,605 tons.
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- India gains wider EU steel access, but carbon levy remains thehindubusinessline.com
- India gains wider EU steel access, but carbon levy remains thehindu.com
