EU Drops Aluminium Scrap Duty Plan Amid India Trade Deal Concerns
The European Union has abandoned a proposed export duty on aluminium scrap amid concerns that the measure could complicate the finalisation of its free trade agreement with India, according to sources familiar with the discussions. The European Commission had considered a 15% duty for three years, aimed at protecting the bloc’s aluminium industry and supporting recycling and sustainability goals.
India is the largest buyer of EU aluminium scrap, accounting for around one-third of the bloc’s exports. EU shipments of aluminium scrap have risen 51% since 2019, reaching a record 1.26 million metric tonnes in 2025. Industry groups had pushed for stronger restrictions, arguing that rising scrap exports and high energy and regulatory costs are putting pressure on European smelters and recyclers.
Instead of introducing the export duty, the EU plans to rely on its Waste Shipment Regulation to limit scrap exports. From May 2027, the bloc is expected to restrict exports of non-hazardous waste to non-OECD countries, although exemptions may be granted. European aluminium industry representatives remain sceptical about whether the environmental rules will effectively prevent exports and said further trade measures may eventually be needed.
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