Steel Standoff Likely To Delay India-UK FTA Rollout

(MENAFN- Live Mint) Commerce secretary Rajesh Agarwal said on Friday that India is very close to operationalising its free trade agreement (FTA) with the UK. However, certain sticking points have emerged following the UK's announcement of new steel safeguard measures that were not in place when the agreement was concluded.

The Indian government had previously indicated that the FTA could come into force by the end of May, but it now appears likely to be delayed owing to concerns around the UK's revised steel policies.

“We are working together to find a creative solution around the steel measure and operationalise the CETA (comprehensive economic and trade agreement) at an early date,” Agarwal told the media in New Delhi.

Also Read | Ficci president: The India–New Zealand FTA is a gateway to Asia-Pacific markets

From 1 July, the UK will cut tariff-free steel import quotas by around 60% from the current safeguard regime. India's exports of iron and steel, including related products, to the UK stood at $893.4 million in 2025-26, forming a significant share of the country's total merchandise exports of $13.4 billion to the British market.

The India-UK CETA, signed in July 2025, was scrutinised by both houses of the UK parliament in March. In India, however, FTAs are ratified through the executive route and require cabinet approval. Following this, both countries must finalise a mutually agreed date for the agreement's 'entry into force'.

Under the CETA, 99% of Indian exports will gain duty-free access to the UK market, covering nearly the entire bilateral trade value. In return, India will reduce or eliminate tariffs on 90% of tariff lines for the UK, accounting for 92% of imports from Britain.

Also Read | The FTA cautionary tale: What India-Korea trade warns us about new global deals

Saurabh Sanyal, secretary general, Assocham, said,“We expressed confidence that both nations will address concerns relating to the UK's revised steel safeguard measures through constructive dialogue, ensuring greater trade certainty and stronger bilateral economic cooperation,”

US trade team arrives next month

On trade talks with the US, Agarwal said that the next visit of the American trade team is expected in June.“Having joined the consultations on both Section 301 investigations, the US will inform us on the next steps post consultations. We are awaiting an opportune time to take forward the US trade deal,” he said.

Section 301 of the US Trade Act of 1974 empowers the US trade representative to examine and act against trade practices that Washington views as unfair or discriminatory. In the past, India has come under US scrutiny over its tariff regime and policies linked to digital trade.

Also Read | India-EU FTA draft clarifies textile origin rules, boosts export prospects

MENAFN15052026007365015876ID1111121946