India will be able to export up to 1.64 million tons of steel per year to the European Union (EU) under the Free Trade Agreement (FTA) with the EU, but Indian exporters will still have to bear carbon-related costs under the Carbon Boundary Regulatory Framework (CBAM), a government official said, citing legal advice. The text of the free trade agreement, published on Tuesday, September 15.
The preferential quota also does not protect Indian steel from the EU CBAM, as far as steel imports are concerned and it is estimated that it could average about 35% of the shipping cost after the CBAM in full, he said. он.
The granting of the FTA to India gives additional preferential quotas of 694,853 MT, on top of the existing quota of 946,616 MT. Taken together, these two companies account for about 68.4% of the 2.4 million tons of steel supplied by India to the EU in 2025, the official added.
Supplies exceeding the quota will result in a 50% tariff ЕС.
The additional quota will become available after the entry into force of the Free Trade Agreement between India and the EU, which is expected by the end of the year, and will continue to depend on product coverage, rules of origin and availability of quotas.
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