EU-India agreement must take into account challenges facing the bloc’s steel industry – EUROFER

The European Steel Association EUROFER, together with representatives of the ceramics, aluminum, and ferroalloy industries, issued a statement on the final stage of negotiations on the Free Trade Agreement (FTA) between the EU and India. The statement emphasizes deep concern about the possible negative impact of the FTA on strategic industrial sectors in Europe if their specific challenges and competitive threats are not taken into account.

The European steel industry supports open and fair trade, particularly in light of the recent return of US tariffs. However, EUROFER stresses that trade agreements cannot create advantages for imports at the expense of EU production.

With state support, access to cheap raw materials, and an export strategy, India is rapidly increasing its industrial capacity. According to the OECD Steel Committee, the country’s steel capacity could reach 205 million tons by the end of 2025, almost double the 2015 level, and 300 million tons by 2030. Most of the new plants will operate using more carbon-intensive blast furnace technology.

EUROFER highlights the deep differences in social, environmental, and climate requirements between India and the EU. Ignoring these factors could lead to a massive increase in imports at dumped prices and put more pressure on European industry, which is already operating under high standards and decarbonization costs.

The association strongly opposes any exemptions or concessions for India under the CBAM. In its view, weakening the mechanism would undermine the EU’s climate goals and put responsible European producers at a disadvantage.

EUROFER calls on negotiators to protect fair competition, ensure full consistency between trade and climate policies, and not to agree to a deal that would threaten Europe’s strategic industrial companies.

As a reminder, India exported 1.47 million tons of rolled steel to the European Union in January-August 2025, which is 47.7% less than in 2024. In total, the EU imported 20.24 million tons of steel products (-1.1% y/y) during this period. Supplies of flat products during the period declined by 5.3% y/y – to 14.75 million tons, while the long products segment saw growth of 12% y/y – to 5.49 million tons.