EU recycling sector reacts to trade restriction regulations!

The European Recycling Industries Confederation (EuRIC) and the Bureau of International Recycling (BIR) stated in a joint press release that the plan addresses reciprocal export restrictions and the potential introduction of “export fees or taxes” on recycled metals, saying that such measures would harm the functioning of global recycling markets and in particular European metal recyclers and risk creating new trade barriers.

No scrap leakage

Recycling associations have repeatedly pointed out that “European recyclers have repeatedly emphasized that 80% of the recycled materials processed in Europe are used on the domestic market, but are exported due to insufficient domestic demand. It is therefore essential to take measures to promote the use of recycled materials in Europe, rather than considering new measures that could undermine the open trade in recycled metals. The assumption that these exports are somehow related to the availability of recycled material in the EU misrepresents the reality of global recycling markets. Recycled metals are exported because domestic demand in the EU is not sufficient to consume the available material. So there is no 'scrap leakage'.“ they emphasized.

Further restrictions on open trade will hurt the recycling industry

Warning against the imposition of additional restrictions on recycled metal exports, EuRIC and the BIR stated: “Metal recyclers worldwide have worked tirelessly in recent months with their governments to prepare for the stringent requirements imposed by the new rules, which will ensure that receiving countries for EU recycled metals comply with high environmental resource management standards. Further restrictions on open trade would seriously damage the European and global recycling industry and the goodwill of the EU's trading partners.”

The associations urged the EU Commission to;

1. Disregard proposals for possible trade restrictions on recycled metals: Ensuring open trade is vital to support the development of a well-functioning recycled metals market. Currently recycled metals are exported because domestic demand in the EU is insufficient to absorb the available material.
2. Introducing mandatory recycled content targets for metal products: We welcome the introduction of mandatory recycled content targets for metal products representing major markets such as the automotive and construction industries, in order to support the creation of such demand.
3. Harmonization of waste classification: Accelerate efforts to establish a harmonized classification system for recycled metals and clearly define EU-wide waste termination criteria.
4. Support domestic recycling infrastructure: Direct investment to upgrade and expand EU recycling facilities to process more recycled metals domestically. This should include measures to give European recyclers access to metallic waste for processing.
5. Build positive relationships with trading partners to maximize circularity: The EU's climate and circular economy objectives will be best met by working closely with trading partners to create predictable and supportive markets for recycled metals.
6. Involve recycling sector stakeholders: Ensure that the recycling sector is fully represented in negotiations, in particular on circularity and the implementation of trade-related measures.

EuRIC and BIR are also committed to working constructively with the European Commission and other stakeholders to advance the circular economy and support the transition to a sustainable metals industry. “We believe that open, fair and efficient global markets for recycled materials are essential to achieving both environmental and economic goals,” they stated.