As negotiations on the EU-India free trade agreement approach conclusion, a coalition of European producers, including the steel, ferroalloy, aluminum and ceramics industries, has issued a joint statement calling on EU policymakers to fully consider the sector-specific challenges before finalizing any agreement, according to a statement by the European Steel Association (EUROFER).
The associations reaffirm their support of open, rules-based trade and EU trade diversification efforts, especially following renewed US protectionism. Still, they stress that such trade policies must not come at the expense of Europe’s industrial base.
Concerns over overcapacity, subsidies and unfair competition
The statement highlights several core risks if a deal proceeds without safeguards. Indian producers benefit from cheap access to natural resources, state support and export-oriented policies, giving them a structural advantage over European firms operating under strict environmental, labor and climate regulations.
Given those competitive asymmetries, EUROFER warns that, without a sector-specific safeguard approach, European steel and metals industries would face “severe market distortions” and risk losing their viability.
Calls for protection: CBAM integrity, fair rules, no exemptions
As part of their demands, the coalition insists on:
- No exemptions or preferential treatment for India under the Carbon Border Adjustment Mechanism (CBAM). They argue granting India special treatment would undermine the EU’s climate ambitions and disadvantage compliant European producers.
- Strict adherence to EU environmental and labor standards; the deal should include robust sustainability and social-labor provisions.
- A level playing field that recognizes that European producers’ substantial investments in decarbonization, recycling and green steel technologies are under risk if cheaper, carbon-intensive imports flood the market.
Why this matters - for industry, climate policy and Europe’s economic future
The outcome of the EU-India FTA negotiations will not only shape trade corridors but may also define the future of European heavy industries. If not properly safeguarded, long-standing European steel and metals producers might be forced to downsize or close, leading to job losses and reduced industrial sovereignty, the environmental and climate goals that European firms have long invested in would be undermined if imported steel and metal products circumvent these efforts, and the EU’s ambition to combine green transition with industrial competitiveness could become incompatible in practice, shifting manufacturing and raw-material supply outside Europe.
The coalition calls on EU trade negotiators and policymakers to recognize the unique exposure and vulnerabilities of the steel, ferroalloy and related sectors, ensure reciprocal standards in trade agreements, maintain the integrity of CBAM and other climate-related mechanisms, avoid blanket tariff reductions or quotas that allow cheap, non-compliant imports to erode Europe’s industrial foundation.