India and EU Focus on Steel, Auto & Carbon Tax Issues in FTA Talks
India and the European Union (EU) have agreed to continue discussions on sensitive areas such as steel, autos, and carbon-tax mechanisms under their proposed free-trade agreement (FTA).
During a recent visit to Brussels by India’s Commerce and Industry Minister, both sides reaffirmed their goal of concluding the FTA by the end of 2025 while acknowledging that key chapters — especially those covering industrial goods such as vehicles and heavy material imports- require more detailed negotiation.
India raised particular concerns about the EU’s Carbon Border Adjustment Mechanism (CBAM), which could impose tariffs of 20-35 % on Indian exports of steel, aluminium, and cement.
For the tyre industry, this development is noteworthy. The auto-component and vehicle-manufacturing supply chains may face new duties or compliance hurdles in exports to Europe. Tyre makers in India and Asia must now factor in potential shifts in tariff exposure and regulatory alignment, particularly for heavy vehicle tyres and exports tied to EU access.
Editor’s View
As trade negotiations evolve, auto-component suppliers, tyre manufacturers, and fleet operators should take note: global trade rules and regulatory frameworks are increasingly becoming part of the product cost structure. For those producing for export, especially in the commercial-vehicles and heavy-equipment segments, design and production must consider not just technical specs but also trade compliance, carbon footprint, and duty exposure. Tyre firms can no longer focus purely on domestic sales or on price war. Instead, they must align with export-readiness, regulatory awareness, and global value-chain resilience.
