India gets 1.9 MT steel export quota from EU
India has secured a significant steel export quota of 1.9 million tonnes annually from the European Union, with the government anticipating additional 0.9 MT through residual quotas, bringing the total to 2.8 MT, according to a commerce ministry official. This represents over 80% of India's steel exports to the EU. In the previous fiscal year, India exported approximately 3 million tonnes of steel goods.
The Tariff-Rate Quota (TRQ) follows the European Union's Steel Overcapacity Regulation, which entered into force on July 1, aiming to protect the EU's domestic steel industry from global overcapacity. The regulation allows for duty-free imports up to 18.3 million tonnes, with a 50% duty on imports exceeding this quota.
Indian exporters have already begun utilizing the quota and shipping steel to the EU. While duty-free access under the TRQ is advantageous, the EU's Carbon Border Adjustment Mechanism (CBAM) will apply to Indian steel, with an estimated carbon charge of 35% if fully phased in. The new steel export deal was announced following the conclusion of negotiations between India and the EU on January 27 and is expected to be signed by the end of the year, with implementation likely to follow in the next year.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
