India’s steel exports will continue to be impacted by the European Union’s carbon tax and import quotas, and the government will take steps to help the sector, said Steel Secretary Mr Sandeep Poundrik. The comments come days after India and the European Union signed a trade deal, which slashed tariffs on several sectors but left the bloc’s carbon border tariff, called Carbon Border Adjustment Mechanism (CBAM), intact. Indian steel mills ship roughly two-thirds of their total exports to Europe. India has sharply criticised the world-first CBAM policy since it was announced by the EU in 2021, saying the levy could hamper steel trade. Since January, the regulatory framework brought in by the EU has led to fees on imports of steel, cement and other goods whose production results in high levels of carbon emissions. India's steel exports to Europe are expected to fall as a consequence, prompting mills to seek alternative buyers in Africa and the Middle East, as per a report.
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