EU Scraps Aluminium Duty Amid India's Trade Deal Pressure

The European Union has retracted a proposed export duty on aluminium scrap to facilitate a free trade deal with India. The duty was meant to support Europe's aluminium industry but faced internal disagreement. Instead, the EU will use environmental regulations to manage scrap exports.

The European Union has pivoted from its plan to impose an export duty on aluminium scrap, a move prompted by concerns over finalizing a free trade agreement with India. According to insider sources, the EU's shift reflects internal divisions and pressures from the global trade landscape, particularly from the U.S. and China.

The original proposal aimed to levy a 15% export duty, though the industry advocated for 30%. However, internal negotiations left the measure only partially covering aluminium scrap. India's exclusion from the dutied countries list, crucial for maintaining a trade deal, diluted the policy's impact on the industry, as confirmed by sources privy to the matter.

Replacing the duty, the EU plans to enforce its Waste Shipment Regulation to achieve similar goals. Despite this, industry leaders remain skeptical about its effectiveness in curbing exports. The ongoing strategic shift has already affected Europe's smelting industry, which suffers from higher costs compared to Asian competitors.