VDM and BDSV Call for Strengthened EU-India Trade Relations

At the 2024 Asia-Pacific Conference in New Delhi, the Association of German Metal Traders and Recyclers (VDM) and the Federal Association of German Steel Recycling and Disposal Companies (BDSV) are urging policymakers to enhance trade relations between Germany, the European Union, and India, particularly in the realms of the circular economy and raw materials.

Emphasizing Strategic Partnerships
The conference will address the recently adopted policy document titled “Focus on India,” which outlines plans to deepen the strategic partnership between Germany and India. VDM and BDSV highlighted India’s position as a major player in the recycling market, being the largest buyer of recycled aluminum and the second largest for recycled steel and copper from the EU.

Significant Trade Volumes
In 2023, the EU exported over 2 million metric tons of ferrous scrap to India, with Germany contributing more than 400,000 metric tons. Additionally, the EU sent nearly 320,000 metric tons of aluminum scrap, with Germany responsible for over 52,000 metric tons, alongside 88,000 metric tons of recyclable red metal, of which Germany shipped more than 32,000 metric tons. Conversely, India exported over 350,000 metric tons of ferroalloys to the EU.

Potential for Cooperation in Circular Economy
These figures underline the robust economic ties between the two regions and the potential for further collaboration in raw materials and the circular economy. Both organizations stress that using recycled metals saves energy and conserves natural resources, and a strengthened partnership could lead to improved environmental and labor standards while minimizing trade barriers.

Global Trade Structures and Future Outlook
VDM and BDSV also mention the importance of including countries like Malaysia and Thailand in global trade structures. They argue that the circular economy’s success relies on the ability to trade recycled metals globally without unfair restrictions. The groups call for the German government to promote international trade in the recycling sector as part of its raw materials diplomacy.

The Asia-Pacific Conference is seen as a crucial platform for enhancing commodity trade relations and paving the way for a sustainable future. Increased cooperation between Germany, the EU, and India is deemed vital for advancing the circular economy and ensuring a stable global supply of raw materials.