Forging Ahead: India-UK Craft Unique Steel Solution for Trade Pact

India and the UK are close to resolving issues around Britain's recent steel safeguards that impact their Comprehensive Economic and Trade Agreement. This involves tariff-free access for 99% of Indian exports to the UK. Both countries are working on a solution to address the steel issue and operationalize the pact swiftly.

India and the United Kingdom are collaborating on an innovative solution to address challenges stemming from the UK's recent steel safeguard, which has delayed the implementation of the Comprehensive Economic and Trade Agreement (CETA) between the two nations. Signed on July 24, 2025, the deal allows 99% of Indian exports to enter the UK duty-free, while tariffs on British cars and whisky will be reduced in India.

Commerce Secretary Rajesh Agrawal mentioned that both countries are prioritizing finding a unique and creative solution to the steel measure issue to officialize the agreement promptly. Starting July 1, 2026, the UK will restrict tariff-free steel imports, aiming to reduce these quotas by 60%. Any imports exceeding these quotas will face substantial tariffs.

The Comprehensive Economic and Trade Agreement holds tremendous potential to significantly increase trade volumes, aiming to double the current USD 56 billion bilateral trade by 2030. However, the UK's move to cut tariff-free steel import quotas could hinder progress, with policy analysts warning it mirrors the EU's protectionist measures. Collaborative efforts continue to mitigate these hurdles.