India-UK Trade Pact Faces Steel Hurdle; 'Creative Solution' Sought

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AuthorSimar Singh|Published at:
India-UK Trade Pact Faces Steel Hurdle; 'Creative Solution' Sought
Overview

India and the UK are pushing to operationalize their Comprehensive Economic and Trade Agreement (CETA), signed July 24, 2025. However, a recent UK steel safeguard measure presents a significant hurdle. Both nations are actively seeking an innovative solution to resolve the issue and finalize the deal before new UK import quotas take effect on July 1, 2026.

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India and the United Kingdom are on the cusp of operationalizing their Comprehensive Economic and Trade Agreement (CETA), a deal inked on July 24, 2025. However, recent actions by Britain to implement a steel safeguard measure have introduced a complex challenge into the final stages of negotiation.

UK Steel Safeguard Measure

The UK's new policy, effective from July 1, 2026, will significantly curtail tariff-free steel imports. Overall quota volumes will drop by 60% compared to existing safeguard levels. Imports exceeding these tighter limits will face a substantial 50% tariff. This measure specifically targets steel products that can also be manufactured within the UK, aiming to protect domestic industries.

Commerce Secretary Rajesh Agrawal indicated on Friday that both nations are collaborating intensely to find a "unique and creative solution" to navigate around this steel measure. The objective is to ensure the CETA can be put into effect at an early date, avoiding further delays. The urgency stems from the impending July 2026 deadline, after which the trade pact's benefits might be overshadowed by these new import restrictions.

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