India-UK Tackle Steel Roadblock for Quick CETA Implementation

India and the UK are collaborating on a solution to mitigate issues caused by the UK's steel safeguard measure, ensuring the early operationalization of their Comprehensive Economic and Trade Agreement. The UK plans to impose a 50% tariff on steel imports exceeding reduced quota volumes by July 2026.

India and the UK are devising a creative solution to navigate challenges stemming from a recent UK steel safeguard that could impact the swift implementation of their Comprehensive Economic and Trade Agreement (CETA), according to Commerce Secretary Rajesh Agrawal.

On July 24, 2025, both nations signed the CETA, which is nearing operational status. Agrawal highlighted ongoing efforts to resolve sticking points related to the UK's newly introduced steel measure, which was not anticipated during negotiations. The objective is to expedite the agreement's activation despite the unexpected hurdle.

From July 1, 2026, the UK is set to impose a quota on tariff-free steel imports, reducing overall quotas by 60%. Imports exceeding these quotas will incur a 50% tariff, affecting products also manufactured domestically in the UK.