NEW DELHI: India and the UK are working on a "unique and creative solution" to address issues arising from Britain's recent steel safeguard measure, which is delaying the operationalisation of the Comprehensive Economic and Trade Agreement (CETA).
Background of the Trade Pact
The two countries signed the pact on July 24, 2025, under which 99% of Indian exports would enter the UK duty-free, while India will reduce tariffs on British products such as cars and whisky.
Sticking Points and Negotiations
"We are very near to operationalising that. There are a few sticking points, as you are aware, the UK has come ahead with a steel measure recently, which was not factored in while negotiating the India-UK deal. We are working together to find a unique, creative solution around the steel measure also so that we can officialise the India-UK CETA at an early date," commerce secretary Rajesh Agrawal told reporters here.
Details of the Steel Safeguard Measure
From July 1, 2026, the UK will limit tariff-free steel imports, reducing overall quota volumes by 60% compared to the steel safeguard measure. Any imports above these levels will then face a 50% tariff. The measure will apply to imports of steel products that can also be made in the UK. Earlier, Britain had safeguard measures that also imposed import quotas. The new measures reduce that quota.
Impact on India's Exports
India's exports of iron & steel and their products to the UK stood at $893.4 million in 2025-26. The new steel measure could affect these exports, prompting both sides to seek a mutually acceptable solution.
