India, UK Working To Resolve Steel Dispute Delaying Trade Pact Rollout

India and the United Kingdom are working on a “unique and creative solution” to resolve issues linked to Britain’s new steel safeguard measures, which have delayed the implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA).

The trade pact, signed in July 2025, aims to significantly boost bilateral trade between the two countries.

• What happened
  • India and the UK are negotiating solutions over Britain’s latest steel import restrictions.
  • Commerce Secretary Rajesh Agrawal said both sides are close to operationalising the India-UK CETA.
  • The UK recently announced stricter steel safeguard measures starting July 1, 2026.
• Why it matters
  • The India-UK trade pact would allow 99% of Indian exports to enter the UK duty-free.
  • India would also lower tariffs on British goods including cars and whisky.
• What is the steel issue
  • The UK plans to reduce tariff-free steel import quotas by 60%.
  • Imports exceeding the quota will face a 50% tariff.
  • The measure affects steel products that can also be manufactured domestically in the UK.
• What changes
  • The steel dispute is temporarily delaying the trade pact’s full rollout.
  • Both countries are trying to finalise a compromise to avoid disruption in bilateral trade.
• Who is affected
  • Indian steel exporters
  • UK steel manufacturers
  • Businesses involved in India-UK trade
  • Automobile and alcohol sectors expected to benefit from the pact

What to watch next:
Whether India and the UK finalize a solution on steel quotas and announce the official implementation date of the India-UK trade agreement.