News
15/09/26
Indian steel exporters seek clarity on EU FTA quotas
Indian steel exporters seek clarity on EU FTA quotas
Mumbai, 15 September (Argus) — India's steel exporters have sought clarity on
tariff-rate quotas under the published India-EU free trade agreement (FTA) text,
as concerns grow that allocations for several flat steel products may have been
reduced. The text, under Annex 2-B released on 11 September, grants India annual
steel tariff-rate quota access of 1.64mn t in the EU, comprising a most-favoured
nation (MFN) quota of 946,616t and a preferential FTA quota of 694,853t. The
largest allocations are for flat steel products, including 509,605t for
hot-rolled coil (HRC), 218,658t for cold-rolled coil (CRC) and 197,860t for
category 4.A metallic-coated sheet. But under quota allocations published by the
EU in June and applicable from 1 July, India's country-specific quotas stood at
597,274t for HRC, 269,974t for CRC and 233,183t for category 4.A metallic coated
sheet. The FTA text has sparked concerns in the Indian steel industry about a
reduction in India's quota allocations and their implications on future trade
with the EU. Indian steel market participants noted India's total quota
allocation under the FTA text appears about 300,000t lower than the quotas
published by the EU in late June. But they are awaiting clarity on when the
provisions would take effect and which figures should be considered the final
allocation for India before drawing conclusions on the extent of India's market
access. The European Commission in the FTA text said the tariff-rate quotas will
"take effect on the date the EU Steel Regulation starts applying". It added that
the text follows negotiations concluded on 27 January and remains subject to
legal revision before signature and entry into force. A major Indian mill said
the quotas appear to be lower but it was seeking clarification from its EU
lawyers. Some market participants mulled the impact on pro-rata duties and quota
usage. If the reduced quotas are applicable, Indian HRC exports may have
"massively overshot" tariff-free allocations in the next quarter, potentially
incurring higher pro-rata duties than previously estimated, an international
trading firm said. The commission did not immediately respond to Argus' request
for clarification. India shipped over 200,000t of HRC to the EU around August,
according to market estimates, against an October-December quota of 149,319t, as
stated in the June document. Some volumes are likely to have already spilled
over into January clearances, market participants said. By Amruta Khandekar
India quotas for key product categories t Category Product MFN quota (under
annex) FTA quota (under annex) Total quota (under annex) Total quota (June 2026
allocation) 1.A HRC 299,197 210,408 509,605 597,274 2 CRC 125,581 93,077 218,658
269,974 4.A Metallic coated sheet 113,084 84,776 197,860 233,183 4. B Metallic
coated sheet 44,627 40,529 85,157 102,044 5 Organic coated sheet 110,919 75,119
186,038 217,338 7 Quarto plate 112,229 69,606 181,835 210,838 — European
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