India-UK CETA talks focus on creative fix for UK steel safeguard measure

India and the UK are trying to resolve problems linked to Britain’s new steel safeguard measure. The issue is slowing the start of the Comprehensive Economic and Trade Agreement CETA. Commerce Secretary Rajesh Agrawal said officials are close to making the deal active. However, both sides must settle remaining concerns around steel rules.

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"We are very near to operationalising that. There are a few sticking points, as you are aware, the UK has come ahead with a steel measure recently, which was not factored in while negotiating the India-UK deal. We are working together to find a unique, creative solution around the steel measure also so that we can officialise the India-UK CETA at an early date,\" Commerce Secretary Rajesh Agrawal told reporters here.

India-UK CETA talks focus on UK steel safeguard measure

The two countries signed the pact on July 24, 2025. Under the agreement, 99 per cent of Indian exports will enter the UK duty-free. India will also lower tariffs on British goods such as cars and whisky. Yet the UK steel safeguard measure has raised new concerns, as it arrived after talks ended.

From 1 July 2026, the UK will cap tariff-free steel imports more tightly. The overall quota volumes will fall by 60 per cent from the current steel safeguard measure. Imports above the quota will face a 50 per cent tariff. The rule will cover steel items that can also be produced within the UK.

India-UK CETA timeline depends on entry into force date

The CETA cleared scrutiny in both houses of the UK Parliament in March. In India, trade agreements need Union Cabinet approval. After domestic steps finish, both sides must set the Entry into Force EIF date. Officials have not announced that date, as they continue talks on the steel-related sticking point.

India’s exports of iron and steel and related products to the UK reached USD 893.4 million in 2025-26. That formed a notable part of India’s USD 13.4 billion merchandise exports to the UK. Earlier, Britain used safeguard measures that set import quotas. The newer approach keeps quotas but cuts the allowed volumes.

India-UK CETA trade goals face concerns flagged by GTRI

Both governments want to double bilateral trade from USD 56 billion by 2030. However, think tank GTRI said the UK’s 60 per cent cut in tariff-free steel quotas may complicate the India-UK Free Trade Agreement. GTRI said London is pairing safeguards with carbon-linked border taxes, like the EU approach.

\"The UK is now moving in the same direction through tighter quotas, safeguard measures and its own CBAM-style framework, GTRI Founder Ajay Srivastava said.Such policies significantly reduce the real commercial value of FTAs. UK may, however, press India to extend the same terms it agreed with the EU, he added.\"

For now, Indian and UK officials are continuing talks to address the UK steel safeguard measure. The aim is to agree on a workable solution and finalise the Entry into Force EIF date. The July 1, 2026 quota change remains central to the discussions, given the size of steel exports within India-UK trade.

With inputs from PTI