India and UK Forge Creative Path for Trade Agreement Amid Steel Tariff Hurdles

India and the UK are diligently working on a "unique and creative solution" to tackle challenges arising from Britain's recent steel safeguard measures, which are causing delays in finalizing the Comprehensive Economic and Trade Agreement (CETA). Signed on July 24, 2025, the agreement aims to allow 99% of Indian exports to enter the UK duty-free, with India in turn reducing tariffs on British goods like cars and whisky.

Commerce Secretary Rajesh Agrawal shared that both nations are close to operationalizing the agreement, with steel measures posing the last hurdle. The UK recently implemented a measure that limits tariff-free steel imports from July 1, 2026. As a result, any imports surpassing the new quota thresholds will face a significant 50% tariff, affecting steel imports that the UK can produce domestically. The previous safeguard measures already set some import quotas.

India's iron and steel exports to the UK amounted to USD 893.4 million in 2025-26, contributing notably to the USD 13.4 billion in total merchandise exports to the UK. Both countries are eager to double their bilateral trade from the current USD 56 billion by 2030. The CETA has cleared legislative hurdles in both the UK and India, with the final step involving agreement on the Entry into Force date.

(With inputs from agencies.)