Home / Business and Economy / EU Abandons Aluminum Export Duty Amid Trade Deal Concerns
EU Abandons Aluminum Export Duty Amid Trade Deal Concerns
11 Sep
Summary
- EU scrapped an aluminum scrap export duty to secure a trade deal with India.
- The decision reverses an earlier plan to protect Europe's struggling smelting industry.
- The EU will now rely on environmental rules to manage scrap exports.
The European Union has withdrawn a proposal for an export duty on aluminum scrap, a significant reversal by the European Commission. This decision was made due to concerns that the levy could hinder the finalization of a free trade agreement with India. The proposed duty, initially aimed at supporting Europe's aluminum smelting industry and sustainability objectives, has been abandoned.
Instead of the export duty, which was set to be announced on September 23, the EU will now implement its environmental regulations to manage aluminum scrap exports. This change reflects internal disagreements within the Commission about protecting domestic industries as global trade patterns evolve. The move also follows pressure from India, a major buyer of EU scrap, which accounts for approximately one-third of these exports.
European smelters have been under pressure due to soaring scrap prices, higher energy costs, and regulatory burdens compared to Asian competitors. Industry representatives have expressed concern that withdrawing the export restriction could undermine confidence in Europe's industrial policy. Shipments of aluminum scrap out of the EU have significantly increased in recent years.
The EU's Waste Shipment Regulation is now expected to be the primary mechanism for curbing scrap exports. This regulation is anticipated to be finalized in November and will ban exports of non-hazardous waste to non-OECD countries in May 2027. However, the effectiveness of this regulation as a substitute for the trade measure remains a point of skepticism within the industry.
