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India has joined Brazil, Turkiye, Switzerland, Australia, Japan, and South Korea in formally challenging the United Kingdom's latest steel safeguard measures at the World Trade Organization (WTO). During a meeting of the WTO's Council for Trade In Goods, New Delhi voiced concerns that the UK's actions could substantially limit tariff-free steel imports.
Seeking Less Restrictive Measures
At the WTO meeting, India urged the UK to consider solutions that would cause less disruption to trade. An official involved in the discussions noted, "India stated it is continuing to work with the UK to address our concerns on this significant sector." This joint action signals shared unease among major steel-importing countries about the UK's new regulations.
Hindrance to India-UK Trade Agreement
The UK's new measures are becoming a major obstacle to the planned implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA). The agreement, signed on July 24, 2025, was expected to become effective this month. However, the recent steel import restrictions have made it necessary to find a "creative solution" to allow for its prompt launch.
Details of New Safeguard Rules
Set to begin on July 1, the UK's new safeguard measures significantly reduce the total volume of steel allowed in tariff-free. The quota has been cut by 60% compared to previous rules. Imports of steel that go beyond these new limits will face a steep 50% tariff. These tighter controls by the UK are intended to support its domestic steel industry but have drawn sharp criticism from its trading partners.