EU drops aluminium scrap export duty over concerns about India deal
In Brussels, Belgium, the European Union has abandoned a plan to introduce an export duty on aluminium scrap over concerns that this could complicate the final signing of a free trade agreement with India. Instead of the trade restriction, the European Commission plans to use environmental rules to reduce scrap exports, Cyprus Mail reports, citing sources familiar with the negotiations.
Duty and exemption for India
According to a draft of the withdrawn proposal seen by Reuters, the European Commission was preparing a 15% duty on aluminium scrap exports for a period of three years. Industry representatives had asked for a rate of 30%.
An annex to the document provided for an exemption from the duty for 91 countries and territories, including India, one of the largest buyers of European scrap. India accounts for about one-third of EU exports of such scrap. Indian officials asked Brussels in late June to ease the planned restrictions.
According to the sources, pressure from India influenced the weakening of the initiative. European Commission President Ursula von der Leyen is expected to sign a trade agreement with Indian Prime Minister Narendra Modi in December.
More current news is available on the UA.News Telegram channel Telegram.
Waste shipment rules
The European Commission said the trade measure had been put on hold because the same goal could be achieved through the EU Waste Shipment Regulation. Under these rules, in May 2027 the EU will ban exports of non-hazardous waste to countries outside the Organisation for Economic Co-operation and Development.
Countries may submit requests for exemptions. A draft secondary legislation states that 32 non-OECD countries have applied for such permits. India, Thailand and Malaysia, according to the European Commission in this draft, did not meet the environmental requirements for an exemption for metal waste and therefore will not be able to directly buy metal scrap from the EU.
Industry representatives are sceptical about the effectiveness of the new approach. EU aluminium scrap exports have risen by 51% since 2019 and reached a record 1.26 million tonnes in 2025. Third countries pay up to 26% more for it than buyers on the EU internal market, according to the draft trade proposal.
