India will receive country-specific tariff-rate quotas (TRQs) totalling 1.64 mln tons per year for steel exports to the European Union under the draft India-EU free trade agreement (FTA).
The total quota of 1.641 mln tons comprises 946,616 tons under the most-favoured-nation (MFN) component and 694,853 tons under the FTA component.
The quotas cover a range of steel products, including hot-rolled and cold-rolled sheets, metallic and organic-coated sheets, quarto plates, stainless steel products, merchant bars and light sections, rebar, wire rod, pipes and tubes.
The largest country-specific quota is for non-alloy and other alloy hot-rolled sheets and strips at 509,605 tons per year, including 299,197 tons under the MFN component and 210,408 tons under the FTA component. The quota for cold-rolled sheets is 218,658 tons, while metallic-coated sheets have a quota of 197,860 tons.
India currently exports around 4 mln tons of steel annually to the EU. The TRQs come as the bloc implements its Steel Overcapacity Regulation, which provides for duty-free quotas of 18.3 mln tons and a 50pct duty on imports above the quota.
Steel imports from India beyond the country-specific quotas will be subject to applicable base-rate duties under the EU’s tariff commitments. The draft agreement also provides for periodic reviews of the quotas, with the first review one year after the FTA enters into force and subsequent reviews every five years.
India and the EU concluded negotiations on the trade pact on January 27. The agreement is expected to be signed by the end of 2026 and could be implemented in 2027.
