The European Metal Trade and Recycling Federation (EUROMETREC) warned that proposals to introduce an import duty in the region of 10% to 20% on scrap could have a “dramatic and adverse” on aluminium scrap flows and prices.
EUROMETREC president, Robert Voss, said: “It is vital that we maintain the free flow of our important raw materials around the world and ensure a level playing field not only in Europe but worldwide.
“The measures proposed in India to protect their domestic aluminium industry by increasing import duties will have a dramatic and adverse effect,” he added.
Mr Voss also warned that the measures could damage India's own secondary aluminium industry, which is involved in supplying its car manufacturers – who represent a major export market.
“It will not only affect the secondary aluminium industry in India, which is a vital part of the automotive sector and of other industries, but also on the European (and worldwide) aluminium scrap flows and prices,” he said.
Mr Voss added: “We urge the Indian government to see sense and not starve their own vital secondary industry of its raw material input.”
Authorities
As part of its efforts to persuade the Indian government not to introduce the duty, the BIR has contacted a number of the country's government authorities, including the Indian commerce secretary, revenue secretary and its safeguards director general, to protest against the plans.
It said it had stressed the importance of preserving free trade for secondary raw materials, as well as the environmental benefits of using scrap aluminium in place of primary raw materials.
BIR has said that if its pleas are not considered, it intends to bring the issue to the attention of the World Trade Organisation via the European Commission's directorate-general for trade, which it has already informed of its initiative.
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