India to seek EU steel quota and tariff easing in trade talks

India will seek easing of quotas and tariffs on EU steel imports as it negotiates a new trade deal as Indian steelmakers struggle to sell the alloy in one of the world's largest markets.

Last year, India and the EU resumed negotiations on a free trade agreement with the goal of completing negotiations by the end of 2023. Both sides had previously started negotiations in 2007, but they were frozen in 2013 due to lack of progress.

“India is likely to raise the issue of the EU steel import quota and its high tariffs in free trade talks,” said an official with direct knowledge of the matter. The official declined to give his name because India's plan to discuss the matter with the EU is confidential.

India's steel and trade ministries did not immediately respond to an email from Reuters asking for comment.

The EU uses a system of quotas and tariffs to protect its steel producers. In addition to India, the main exporters of steel to the EU are China, Russia, South Korea, Turkey and Ukraine.

“Secondary steel producers have raised the issue of EU export quota and tariffs preventing India from exporting steel to the EU,” the official said.

In talks with the EU, India is also expected to raise New Delhi's concerns about a proposed EU tariff on carbon emissions from imports of polluting goods such as steel and cement.

“All these countries, in order to protect their industry, impose their own standards,” the official said.

Separately, India has launched four investigations into Chinese imports of stainless steel to investigate potential dumping, the official said.

Last month, New Delhi imposed anti-dumping import duties on seamless stainless steel pipe and pipe imports from China.

The official also said that India is working on a proposal to introduce 23 new quality control procedures to check for substandard imports.

As Indian steel mills grapple with supply disruptions caused by the war in Ukraine, the official said New Delhi is considering securing coking coal supplies from new markets such as Mongolia.

The steel ministry has also asked the finance ministry to lower the import duty on coking coal, the official said.