EU-India Free Trade Agreement Must Address EU Steel Industry Challenges

EU-India FTA Must Consider EU Steel Industry Challenges

EUROFER emphasizes that the EU-India Free Trade Agreement (FTA) must safeguard Europe’s steel sector from unfair import competition. European steelmakers warn that ignoring India’s industrial growth and state support could jeopardize strategic industries. The FTA negotiations require careful assessment of competitive threats to ensure a level playing field for EU producers.

India’s steel capacity could reach 205 million tons by the end of 2025, nearly double its 2015 output, according to the OECD Steel Committee. Most new plants use carbon-intensive blast furnace technology, creating social, environmental, and climate differences compared with EU operations. As a result, EUROFER stresses that trade concessions could disadvantage European producers who meet stringent climate and decarbonization standards.

EU imports of Indian steel totaled 1.47 million tons from January to August 2025, down 47.7% year-on-year. Overall EU steel imports fell slightly to 20.24 million tons, with flat products declining 5.3% and long products rising 12%. These figures highlight that fair trade policies remain critical to maintaining EU industrial competitiveness.

EU-India FTA and Strategic Industry Protection

EUROFER strongly opposes exemptions for India under the Carbon Border Adjustment Mechanism (CBAM). The association warns that weakening CBAM would compromise EU climate goals and favor less responsible producers. Ensuring consistency between trade and environmental policies is key to protecting Europe’s strategic steel, aluminum, ceramics, and ferroalloy industries.

The FTA negotiations also need to account for India’s low-cost raw material access and export strategies. EUROFER calls for trade measures that prevent dumping and maintain fair competition, ensuring that EU producers do not lose market share to unfairly subsidized imports. Meanwhile, EU policymakers must balance industrial protection with climate commitments.

Robust EU safeguards can help preserve strategic industrial capacity, encourage responsible production practices, and maintain the bloc’s leadership in decarbonized steelmaking.

SuperMetalPrice Commentary:

The EU-India FTA represents both opportunity and risk for European steelmakers. While trade expansion can benefit EU industries, failing to address India’s competitive advantages and climate-policy gaps could undermine EU strategic sectors. Market observers should watch CBAM enforcement and raw material policies closely, as these factors will determine whether European steel remains globally competitive under evolving trade dynamics.