India-UK Trade Agreement Delayed by New Steel Safeguard Measures
Steel safeguard measure hits India-UK trade pact rollout
The Economic Times
Image: The Economic Times
India's free trade agreement (FTA) with the UK, initially set for a May rollout, faces delays due to the UK's new steel safeguard measures, which cut tariff-free steel import quotas by 60% starting July 2026. Both nations are exploring solutions to expedite the implementation of the Comprehensive Economic and Trade Agreement (CETA).
- 01The UK's new steel safeguard measures were not included in initial negotiations for the India-UK FTA.
- 02Commerce Secretary Rajesh Agrawal emphasized the need for a 'unique and creative solution' to resolve the issue.
- 03The CETA was signed in July 2025, and both countries aim to operationalize it quickly despite the setbacks.
- 04India's exports to the US rose 1.1% year-on-year, reaching $8.47 billion in April 2023.
- 05India is targeting overall exports of $1 trillion by 2026-27, supported by a ₹25,060 crore ($3.02 billion USD) export promotion mission.
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India's free trade agreement (FTA) with the United Kingdom, expected to be implemented by May 2026, has encountered delays due to the UK's newly introduced steel safeguard measures. These measures include a 60% reduction in tariff-free steel import quotas starting July 1, 2026, which were not considered during earlier negotiations for the Comprehensive Economic and Trade Agreement (CETA) signed in July 2025. Commerce Secretary Rajesh Agrawal stated that both nations are working on a 'unique and creative solution' to address these concerns and expedite the agreement's operationalization. Meanwhile, India is also in discussions with the United States to finalize an interim trade agreement, with the next round of talks scheduled for next month. In April 2023, India's exports to the US increased by 1.1%, amounting to $8.47 billion, while imports saw a decline of 4.67%. Looking ahead, India aims to achieve $1 trillion in overall exports by 2026-27, bolstered by a ₹25,060 crore ($3.02 billion USD) export promotion mission.
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The delay in the India-UK FTA could affect Indian exporters in the steel sector, potentially leading to increased costs and reduced competitiveness in the UK market.
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