European wood-based panels and HPL producers are urging the EU to strengthen safeguards in its free trade agreement with India, warning that lower tariffs could increase competition in panels and furniture while European manufacturers continue to face substantially higher production and regulatory costs.<\/p>\n
The European Panel Federation (EPF) and the International Committee of the Decorative Laminates Industry (ICDLI) set out their concerns in a joint position paper as the agreement enters the approval process. The European Commission submitted proposals for the signature and conclusion of the EU-India FTA to the Council on September 11. The agreement will subsequently require the consent of the European Parliament before it can enter into force.<\/p>\n
The Commission expects the agreement to remove or reduce tariffs on 96% of EU goods exports to India and estimates annual customs-duty savings for European exporters at around EUR 4 billion. Brussels says the deal will improve access to the Indian market and reduce existing trade barriers.<\/p>\n
For Europe's wood-based panels industry, however, the terms governing imports are drawing closer attention.<\/p>\n
The EPF and ICDLI paper covers particleboard, OSB, MDF and HDF, plywood and HPL. The two associations expect tariff reductions to improve the price position of Indian products in Europe and say India's existing production base, particularly in plywood, gives suppliers considerable scope to increase exports if market conditions become favourable.<\/p>\n
Current EU imports from India remain relatively limited in several of these product groups, but the associations are concerned about what could happen after tariffs are removed and additional Indian capacity comes on stream.<\/p>\n
HPL is already showing a stronger import trend. According to the position paper, EU HPL imports in 2025 were 59% above their 2019 level, while import growth has been faster than production growth among European manufacturers. EPF and ICDLI argue that duty-free access for additional Indian supply could increase pressure on that market.<\/p>\n
Furniture imports add a second risk<\/strong><\/p>\n The larger issue for wood-based panels may not be panels themselves. Furniture is one of the principal outlets for European particleboard, MDF and decorative surfaces. EPF and ICDLI say an increase in finished furniture imports from India could displace some European production and consequently reduce panel demand inside the EU.<\/p>\n That would expose European producers from two directions: direct competition from imported wood-based panels and weaker demand from domestic furniture manufacturers.<\/p>\n The associations also point to differences in labour costs, environmental requirements and regulatory conditions between the two markets. They want any opening of the EU market accompanied by comparable access for European products entering India.<\/p>\n One issue is India's Bureau of Indian Standards certification system. EPF and ICDLI are asking for changes to the BIS process and closer alignment with internationally recognised standards, arguing that European wood-based panels and HPL should not face non-tariff barriers in India while Indian suppliers receive wider access to the EU.<\/p>\n Industry asks for faster safeguards<\/strong><\/p>\n EPF and ICDLI want the agreement to contain mechanisms allowing the EU to react more quickly if imports increase sufficiently to disrupt the European market.<\/p>\n They argue that conventional trade-defence investigations can take too long when import patterns change rapidly and are asking for continuous monitoring of imports, European production and prices. They also want safeguard measures available if imports rise sharply and European producers suffer material injury.<\/p>\n Citing European Commission figures covering imported products generally, the associations say only 0.0082% of goods released for free circulation were physically inspected, equivalent to 82 items per million. Of those 82 checked products, 13 were refused entry, meaning around 16% of the inspected items failed the relevant requirements. These figures refer to EU imports across product categories and should not be read as a failure rate for Indian wood-based panels specifically.<\/p>\n EPF and ICDLI want more customs personnel, infrastructure and risk-based controls as trade volumes increase.<\/p>\n They also raise the possibility of third-country material being processed or routed through India before entering the EU, including wood originating in Russia or Belarus. The paper identifies this as a potential circumvention risk rather than documenting an existing large-scale trade flow through India.<\/p>\n The wood-based panels industry is not calling for the EU-India agreement to be rejected. EPF and ICDLI say they support open trade, but want the agreement to include safeguards, stronger enforcement and more reciprocal access before it is ratified.<\/p>\n The Council will first decide whether to authorise signature. European Parliament consent will then be required before the agreement can be concluded and enter into force.<\/p>","protected":false},"excerpt":{"rendered":" European wood-based panels and HPL producers are urging the EU to strengthen safeguards in its free trade agreement with India, warning that lower tariffs could increase competition in panels and furniture while European manufacturers continue to face substantially higher production … Continue reading