Industry Odisha Bureau,Sep 11: The European Union abandoned a proposed export duty on aluminium scrap amid India-EU trade negotiations. Brussels will now rely on environmental rules instead.
The European Union has abandoned its proposed aluminium scrap export duty. Sources linked the reversal partly to India-related concerns. The measure risked complicating the India-EU free trade agreement. Brussels now plans to rely on environmental regulations instead.
India Becomes Central To EU Scrap Debate
India buys roughly one-third of EU aluminium scrap exports. New Delhi had sought relief from the proposed restrictions. India subsequently appeared among 91 countries listed for exemption. Sources said this substantially weakened the measure’s effectiveness. India’s commerce ministry did not immediately respond to Reuters.
Why Europe Wanted An Aluminium Scrap Duty
The Commission had drafted a 15% export duty proposal. It would have lasted three years. European industry had sought a 30% duty instead. The measure aimed to preserve scrap for European smelters. EU scrap exports rose 51% since 2019. Shipments reached 1.26 million metric tonnes in 2025. Third-country buyers pay up to 26% above EU domestic prices.
India-EU FTA Changes The Calculation
Brussels and New Delhi were preparing to finalise their trade agreement. Commission President Ursula von der Leyen expects to sign it in December. Prime Minister Narendra Modi is expected to participate. Sources said Indian pressure contributed to the proposal’s dilution. The Commission did not publicly confirm that explanation.
EU Turns To Waste Shipment Rules
Brussels will instead rely on its Waste Shipment Regulation. That framework restricts non-hazardous waste exports to non-OECD countries. The restrictions are expected from May 2027. Countries can seek exemptions under the rules. Thirty-two non-OECD countries had applied, a draft showed. India, Thailand and Malaysia reportedly failed specified environmental requirements. That could limit their direct EU scrap purchases.
European Aluminium Industry Pushes Back
Novelis executive Emilio Braghi criticised the reversal directly. He said it risks undermining confidence in EU industrial policy. Norsk Hydro’s Jostein Roynesdal expressed similar concern. He noted four EU recyclers have already closed. European Aluminium’s Paul Voss said the trade measure may still return. Industry sources remain sceptical that environmental rules alone can work.
What It Means For India
The abandoned duty removes one immediate trade barrier for India. However, environmental eligibility now carries greater weight. India’s future scrap access may depend on Waste Shipment Regulation compliance. That outcome remains unresolved pending the regulation’s finalisation in November.
Closing
The export duty has disappeared, but Europe’s underlying scrap-supply question remains. India stays commercially central to the European scrap market. Environmental regulation could become the next flashpoint in that relationship. The tension between trade openness and industrial protection persists, just through a different policy channel.
