India hopes for preferential treatment for steel exports under EU’s new regulations

The European Union (EU) is in the process of negotiating new steel regulations with its trading partners and stakeholders in its steel market, even as India remains hopeful of securing preferential treatment

for its steel exports to the 27-nation bloc. Under the recently concluded Free Trade Agreement (FTA) talks, India has agreed to remove duties in phases on most iron and steel products from the EU. Government sources said that while the EU’s existing safeguard regime is ending, it has introduced a new steel regulation under a WTO provision.

The 27-nation bloc is transitioning to a more restrictive steel trade regime aimed at replacing current safeguards. The key framework governing this shift is the proposed Steel Overcapacity Regulation, formally introduced in October 2025 and scheduled to come into force from July 1, 2026.

Commerce and Industry Minister Piyush Goyal said both sides had agreed, in good faith, to work towards preferential treatment for India as an FTA partner compared with non-FTA countries, expressing hope that the issue would be resolved over time. India currently exports around 4 million tonnes of steel to the EU, while also sourcing high-quality steel from the bloc for its manufacturing sectors.

Government sources noted that a 47% reduction in steel quotas under the new regulation would make conditions difficult for existing suppliers, adding that the final outcome would depend on negotiations and eventual resolution at the WTO. India currently accounts for around 10% of the EU’s import basket in these tariff lines, a share it is seeking to preserve.