Under the free trade agreement negotiations with the European Union (EU), India has secured a total country specific quota of 1,641,469 mt for annual steel exports.
Of this amount, 946,616 mt will come from the existing most favored nation (MFN) quota, while an additional 694,853 mt will be provided under the free trade agreement.
The total quota is estimated to cover approximately %68 of India’s steel exports to the EU in 2025. When only the existing MFN quota is considered, the coverage rate stands at approximately %39.
Steel shipments exceeding the quota will remain subject to the EU’s %50 out of quota tariff. The agreement must still go through the necessary approval and ratification processes before entering into force. The process is expected to be completed by the end of 2026.
Quota covers a wide range of steel products
The country specific quota covers hot rolled sheets and strips of alloy and non alloy steel, cold rolled sheets, metallic coated sheets, stainless steel products and various long steel products. Bars, rebar and wire rod are also included in the quota.
The largest product specific allocation is for hot rolled sheets and strips, at 509,605 mt.
The expanded quota will not exempt steel products exported from India to the EU from the Carbon Border Adjustment Mechanism (CBAM). CBAM will apply to steel products imported into the EU regardless of their quota status.
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