Industry representatives raised concerns over the European Union’s proposed restrictions on recycled metal exports to India during the Bureau of International Recycling (BIR) World Convention in Malaga, Spain.
During a plenary session of BIR’s International Trade Council, speakers discussed the EU’s updated Waste Shipment Regulation (WSR). The proposed rules have excluded India and several other major metal trading economies from a provisional list of approved importers of materials from non-OECD countries. Malaysia and Vietnam are also among the excluded countries.
The EU will finalise the list after consultations on 21 November. The updated rules are scheduled to take effect in May 2027. BIR and Recycling Europe have called for a delay in implementation.
Indian Recycler Questions EU Trade Policy
Dhawal Shah, Partner at Metco Ventures (India), expressed concern over the proposed restrictions. He said he had worked with European businesses for 30 years and valued Europe’s transparency and trade practices.
However, he believes the recent policy direction has raised questions about the EU’s approach.
Shah questioned the environmental reasoning behind the regulation. He said the European Commission refers to the environmentally sound management of materials, but he believes economic concerns also influence the decision.
“It’s nothing to do with environment anymore. As a country, as India, as the fourth largest economy, we really don’t want to be played around. We need some straight talking. We need some clarity.”
India-EU Free Trade Agreement Raises Concerns
Shah also highlighted the timing of the proposed restrictions ahead of the India-EU Free Trade Agreement (FTA), which is due to be signed in December.
He described the proposed agreement as the “mother of all FTA agreements” and noted that it represents 25% of global GDP.
According to Shah, both sides had agreed not to change federal laws affecting trade while negotiations continued. He believes the proposed WSR changes raise questions about that commitment.
He also pointed to differences in how the rules treat recycled and intermediate materials.
“Intermediate products of aluminium or copper can flow into our country [from the EU]. We welcome that but my simple question here is: ‘Why not scrap?’ Maybe better sense will prevail, and we may have some corrections.”
Industry Warns Against Restricting Recycled Material Trade
Opening the session, International Trade Council Chairman Emmanuel Katrakis of Galloo Group said discussions increasingly focus on restrictions on secondary material movements rather than free trade.
He noted that lobbying for export tariffs and restrictions has grown over the past two years. Similar trends are also emerging in North America and South America.
Caroline Craenhals, Chief Executive of Belgian Scrap Terminal, said Europe wants to strengthen its circular economy by keeping materials within its borders. However, she warned that restricting exports could weaken the recycling industry.
“A loop is not a cage,” she said.
Craenhals explained that export restrictions could reduce access to important markets. As a result, Europe could face a surplus of recycled materials without enough demand from its domestic industries.
She supported traceability, environmental standards and responsible trading. However, she stressed the need to distinguish illegal waste dumping from legitimate trade in high-quality recycled raw materials.
She also called for improvements to End-of-Waste regulations and stronger demand measures to support circularity within Europe.
US Recycler Highlights Business Risks
Kevin Gershowitz, President of Gershow Recycling (USA), shared his views on the changing regulatory environment.
He described how his family business grew from a scrap trading operation in New York during the mid-20th century into a major recycling company. He said businesses must adapt to changing market conditions.
Referring to the May 2027 implementation date, he asked delegates whether they were prepared for the changes.
Gershowitz acknowledged that some companies could struggle under the new rules. He also warned that similar export restrictions could emerge in the United States.
However, he believes the ReMA and its members have strong relationships with Congress and can challenge such measures.
He also highlighted the difference between export and import restrictions, saying:
“With an export restriction you shoot yourself in the foot; with an import restriction, you shoot the other guy.”
Argentina’s Experience Raises Policy Concerns
Alejandro Jaramillo, Chief Executive of Glorem (Mexico), discussed Argentina’s experience with recycled metal export restrictions.
In 2009, Argentina suspended exports of recycled ferrous materials to secure more raw materials for its domestic industry. The government later extended the restrictions to other metals.
Although the measures were initially intended to last 180 days, they remained in place for 16 years.
Jaramillo said the government later identified several problems with the policy. These included distorted prices, lower investment in recycling, reduced material separation and collection, and continued shortages of materials.
He warned that the EU regulation could encourage similar measures in Latin American economies.
“My concern is if this [WSR] regulation does go forward in its current shape, it will set a precedent for Latin American economies to do the same,” he said. “And there’s always a risk for retaliation. I don’t know if the European regulators that drafted this legislation were mindful of that.”
BIR Calls for Stronger Demand-Side Measures
Katrakis said more than 80% of the scrap metals recycled in Europe already remain within the region. He argued that export restrictions alone cannot create circular markets.
Instead, he called for measures that increase demand for recycled materials. These include tax policies, recycled-content requirements and green public procurement that rewards circularity.
He also highlighted the need to support the entire recycling value chain. This includes simpler rules for moving recycled materials within the European market and measures to protect value chains from unfair trade practices without adding further costs for European industries.
Katrakis said export restrictions do not address these priorities.
He also questioned policies that aim to protect energy-intensive industries while EU economic growth remains between 1% and 2%.
He argued that policymakers should focus on strengthening the entire industrial value chain and creating more value before shifting competitive advantages between industries.