02/28/2025 19:36:18 UTC | Top News
Author Fast Webs<.>, <.>

* EU and India aim to finalize a free trade agreement by the end of 2023
* Concerns raised about potential impacts on the EU steel industry if trade barriers are lowered.

Sources within the European steel industry have expressed concern at the announcement by European Commission President Ursula von der Leyen that India and the EU are aiming to finalize a free trade agreement by the end of the year.
Speaking during a Feb. 28 joint press engagement in New Delhi with Indian Prime Minister Narendra Modi, von der Leyen affirmed that a closer alliance with India would be a cornerstone of Europe’s policy in the years and decades to come, built on enhanced cooperation on trade, technology, security and defense.
A free trade agreement between the EU and India would be the largest deal of this kind anywhere in the world. I am well aware it will not be easy. But I also know that timing and determination counts, and that this partnership comes at the right moment for both of us, von der Leyen said. This is why we have agreed with Prime Minister Modi to push to get it done during this year. And you can count on my full commitment to make sure we can deliver,”
India and the EU resumed talks on a free trade agreement in 2021 after negotiations collapsed in 2013.
The EU wants India to lower tariffs of more than 100% on imported cars, whiskey and wine, while India seeks greater EU access for its drugs and chemicals producers.
India is also strongly opposed to Europe’s Carbon Border Adjustment Mechanism, which levies a carbon tax on certain exports into the EU including steel, aluminum and cement.
The CBAM is in a transition phase that started Oct. 31, 2023, and will phase in from 2026 through 2034. The iron-steel industry is expected to be sector most severely by the implementation of the CBAM.
The EU has significantly stepped up its efforts to sign trade agreements with third countries since the reelection of US President Donald Trump, announcing trade agreements with the Mercosur bloc – pending ratification – as well as with Mexico and Malaysia.
On Feb. 26, US President Donald Trump stated that he plans to place a 25% tariffs on all EU-produced goods, claiming the that bloc was established to “screw the United States.”
For her part, von der Leyen said, It is time to be pragmatic and ambitious. And to realign our priorities for today’s realities.”
Sources within the European steel market expressed concern at the potential concessions the EU could offer as part of any free trade agreement with India.
“Von der Leyen opening [trade negotiations] with India is worrying,” a source within the Italian stainless steel scrap industry told Platts. “The Indian market is so aggressive, if they cancel [European] safeguarding measures then it could be a disaster for Italian steel works. I worry because the Indian market can get cheap raw materials from Indonesia, so when they export to Europe they can offer material at a lower price, it could undercut the European market.”
Steel imports from India is currently subject to a series of EU reviews and investigations.
The European Commission announced Aug. 8 an anti-dumping investigation for certain non-ferrous products originating from Egypt, India, Japan and Vietnam. The announcement, published in the Official Journal of the European Union, said that European Steel federation Eurofer lodged a complaint alleging that the imports of certain hot-rolled flat products originating from these four nations were being dumped into the market and, therefore, causing economic damage to the bloc.
In addition, the EC is currently conducting a review of the safeguard measures applicable to imports of certain steel products to reassess the allocation and management of tariff rate quotas to ensure they align with current market dynamics and stakeholder interests. India is one of the countries affected by this measure as it has a substantial interest in exports of stainless steel bars to the EU.
European domestic hot-rolled coil prices saw a modest uptick on Feb. 28, with market participants closely monitoring the EU safeguard review, which is expected to impact import volumes and pricing dynamics.
Platts, part of S&P Global Commodity Insights, assessed HRC in Northwest Europe at Eur612.50/mt ex-works Ruhr, up Eur2.50 on the day. In Southern Europe, HRC was assessed at Eur605/mt ex-works Italy, stable on the day.
Platts assessed imported HRC in Northwest Europe at Eur550/mt CIF Antwerp, and at Eur545/mt CIF South Europe, both stable on the day.