{"id":124360,"date":"2026-09-14T11:11:10","date_gmt":"2026-09-14T05:41:10","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=124360"},"modified":"2026-09-14T11:11:10","modified_gmt":"2026-09-14T05:41:10","slug":"india-eu-fta-import-regime","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/india-eu-fta-import-regime\/","title":{"rendered":"India EU FTA &#8211; 1.64 Million Tonne Steel Quota and New EU Import Regime"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong>India EU FTA Latest News<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India has secured <\/span><b>country-specific tariff-rate quotas (TRQs) of about 1.64 million tonnes of steel products annually<\/b><span style=\"font-weight: 400;\"> under its proposed Free Trade Agreement (FTA) with the European Union (EU).<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>About Tariff-Rate Quota<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A <\/span><b>Tariff-Rate Quota (TRQ)<\/b><span style=\"font-weight: 400;\"> is a trade policy instrument that allows a specified quantity of a product to enter a market at a preferential or lower tariff rate. Imports beyond the specified quota are subject to a higher tariff.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In the India\u2013EU arrangement, country-specific quotas provide Indian steel exporters with defined access to the EU market.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Steel exported outside the applicable quota will face the duties prescribed under the EU&#8217;s new steel regime.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">TRQs therefore combine <\/span><b>market access with domestic industry protection<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>India&#8217;s Steel Quota under the FTA<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India has secured a total country-specific quota of <\/span><b>1,641,470 tonnes annually<\/b><span style=\"font-weight: 400;\">. This comprises:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>946,616 tonnes<\/b><span style=\"font-weight: 400;\"> under the Most Favoured Nation (MFN) component<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>694,853 tonnes<\/b><span style=\"font-weight: 400;\"> under the FTA component<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India currently exports approximately <\/span><b>4 million tonnes of steel annually to the EU<\/b><span style=\"font-weight: 400;\">, making the quota an important consideration for the country&#8217;s steel industry.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The negotiated access is particularly significant because steel imports entering the EU outside the applicable quotas will attract a <\/span><b>50% tariff<\/b><span style=\"font-weight: 400;\"> under the new regime.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>EU&#8217;s New Steel Import Regime<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The EU&#8217;s new Steel Regulation came into force on July 1, 2026.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It replaced the temporary safeguard measures introduced in 2018, which expired in June 2026, after reaching the maximum eight-year period permitted for temporary safeguards under <\/span><strong><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/world-trade-organisation\/\" target=\"_blank\">World Trade Organisation<\/a><\/strong><span style=\"font-weight: 400;\"> (WTO) rules.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The new regime seeks to protect the European steel industry from the effects of global overcapacity and potentially low-priced imports. It provides:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Duty-free tariff quotas of 18.3 million tonnes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">A 50% duty on imports outside the applicable quotas<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">A melt-and-pour requirement aimed at improving transparency regarding the origin and production of steel<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under the new system, MFN quotas are allocated based on each exporting country&#8217;s average share of EU imports in individual product categories during 2022-24.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Steel Products Covered<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The country-specific quotas cover a broad range of steel products, including:<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Non-alloy and alloy hot-rolled sheets and strips.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Cold-rolled sheets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Metallic-coated sheets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Organic-coated sheets\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Tin mill products<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Quarto plates<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Stainless steel products<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Merchant bars and light sections<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Reinforcing bars<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Wire rods<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Pipes and tubes<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The largest Indian country-specific quota is for non-alloy and other alloy hot-rolled sheets and strips, at 509,605 tonnes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This consists of 299,197 tonnes under the MFN component and 210,408 tonnes under the FTA component.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Other significant quotas include 218,658 tonnes for cold-rolled sheets, 197,860 tonnes for metallic-coated sheets, and 186,038 tonnes for organic-coated sheets.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>News Summary<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The negotiated steel access is significant because the EU is simultaneously strengthening protection for its domestic steel industry.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The 1.64-million-tonne country-specific quota gives Indian exporters predictable access to the EU market despite the new 50% out-of-quota tariff.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Of the total quota, nearly 6.95 lakh tonnes will receive access under the FTA component, while around 9.47 lakh tonnes will fall under the MFN component.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The agreement also contains mechanisms to prevent India from being disadvantaged if the EU subsequently provides more favourable quota access to another FTA partner.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India will have access to additional quota volumes in product categories where it already has a country-specific quota.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These additional volumes will be allocated through competition among eligible EU FTA partners having country-specific quotas.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For categories without an Indian country-specific quota, Indian exporters can access residual quotas, including general residual quotas and preferential quotas reserved for EU FTA partners.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The EU has committed to administering the TRQs in a transparent, objective and non-discriminatory manner and making relevant information regarding their administration publicly available.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Review Mechanism<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The agreement provides for periodic review of the negotiated quotas.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The first review will begin one year after the FTA enters into force, followed by subsequent reviews every five years.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These reviews will consider market developments, quota utilisation and changes in the EU&#8217;s steel regime.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The agreement also provides for consultation with India if the EU proposes amendments to Product Specific Rules (PSRs) for products covered under its Steel Regulation.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Significance for India<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The arrangement provides Indian steel exporters with greater certainty and predictability in a major export market.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At the same time, the benefits will depend on effective utilisation of the quotas. Since India currently exports around 4 million tonnes of steel annually to the EU, the negotiated access does not cover the entirety of existing exports.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For Indian steel producers, therefore, the FTA provides an opportunity to preserve and expand market access while encouraging greater competitiveness, product diversification and compliance with evolving European trade regulations.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/economictimes.indiatimes.com\/industry\/indl-goods\/svs\/steel\/india-to-get-6-94-lakh-tonnes-steel-export-quota-under-eu-free-trade-pact\/articleshow\/134217472.cms?from=mdr\" target=\"_blank\" rel=\"nofollow noopener\">ET<\/a> | <a href=\"https:\/\/www.thehindubusinessline.com\/economy\/india-gets-694-lakh-tonnes-of-steel-quota-annually-for-exports-under-india-eu-free-trade-pact\/article71462996.ece\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India secures 1.64 million tonnes of country-specific steel quotas under the India EU FTA as the EU introduces a new steel import regime with a 50% out-of-quota tariff.<\/p>\n","protected":false},"author":21,"featured_media":124390,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[1676,60,22,59],"class_list":["post-124360","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-mains-current-affairs","tag-india-eu-fta","tag-mains-articles","tag-upsc-current-affairs","tag-upsc-mains-current-affairs","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/124360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=124360"}],"version-history":[{"count":3,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/124360\/revisions"}],"predecessor-version":[{"id":124401,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/124360\/revisions\/124401"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/124390"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=124360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=124360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=124360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}