India-UK trade deal faces steel dispute before implementation

13:15

India’s long-awaited free trade agreement with the United Kingdom has encountered new challenges ahead of its expected implementation, following recent British measures aimed at tightening steel import regulations.

Indian Trade Secretary Rajesh Agrawal stated that both countries are close to finalizing the agreement, but discussions continue over concerns linked to the UK’s new steel protection policies. The measures were introduced earlier this year to protect Britain’s domestic steel industry from rising global imports.

Under the updated rules, which are expected to take effect in July, tariff-free quotas on steel imports will be reduced, while additional duties may apply to shipments exceeding those limits. Indian officials fear that these restrictions could reduce some of the commercial advantages anticipated under the trade deal.

India had expected its steel producers to benefit from improved access to the British market through lower tariffs negotiated as part of the agreement. However, the new safeguards may complicate those expectations.

Despite the disagreement, both sides say they remain committed to finding a practical solution that would allow the agreement to move forward in the near future.

The free trade agreement is considered strategically important for strengthening economic ties between India and the United Kingdom, particularly in sectors such as manufacturing, technology, and services.