EU Trade agreements and stainless steel: between market openness and strategic safeguards
The European Union has concluded numerous free trade and economic partnership agreements over the past decades in an attempt to diversify its markets, resources and ties around the world. Some are fully operational, such as the EU-Vietnam Free Trade Agreement( EVFTA), concluded in 2020. Others are still under negotiation, such as the Comprehensive and Enhanced Partnership Agreement( CEPA) with Indonesia, or the agreement with India( the FTA on goods is concluded; negotiations for a broader approach are still ongoing).
By Aperam
An EU CEPA generally goes beyond traditional FTAs. It establishes broader and more binding commitments, covering not only trade in goods but also services, investment protection, regulatory cooperation, and sustainability provisions. Whether referred to as a CEPA or a“ modern FTA”, these frameworks aim to anchor trade relations in predictable, stable, and transparent conditions of competition, underpinned by a longterm strategic perspective. Negotiations with Indo-Pacific countries are gaining in momentum on this basis. The EU has concluded agreements with Japan, Vietnam, Singapore and South Korea, and is currently negotiating with India, Indonesia, Thailand, New Zealand, and Australia. While the scope of each agreement varies, they share a common objective: combining market openness with strict enforcement of trade, environmental and competition rules, particularly in carbon-intensive and strategically sensitive sectors such as stainless steel.
Implications for stainless steel Stainless steel is frequently classified as a high-risk and potentially distortion-prone sector. This status reflects several structural factors:
• reliance on nickel and other strategic raw materials;
• capital-intensive production often supported by state intervention;
• exposure to global overcapacity;
• and increasing regulatory pressure linked to carbon emissions and sustainability standards.
The endemic volatility of nickel prices and geopolitical pressures regarding access to certain critical materials are exacerbating the sector’ s structural imbalances.
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