European Union officials are debating whether to broaden the bloc’s carbon border adjustment mechanism to cover a wider range of downstream steel and aluminum products, according to policy proposals circulated ahead of autumn trade talks.

The current mechanism applies mainly to raw and semi-finished metal, and manufacturers have argued that finished goods made from carbon-intensive inputs enter the EU largely unchecked, undermining the policy’s original intent.

Trading partners including India and Turkey have warned that any expansion could trigger new disputes at the World Trade Organization, adding to friction over the mechanism since its phased rollout began.

A decision is expected later this year, with officials weighing the added administrative burden against pressure from domestic producers who say they remain at a competitive disadvantage against imports from countries with looser emissions rules.