India and UK Seek Solution for Steel Trade Dispute
India and the United Kingdom are negotiating a resolution to British steel safeguard measures that threaten the implementation of their Comprehensive Economic and Trade Agreement.
India and the United Kingdom are attempting to resolve disputes over new British steel safeguard measures that jeopardize the rollout of the Comprehensive Economic and Trade Agreement (CETA). The pact was originally signed on July 24, 2025, but the current measures were not factored into those initial negotiations.
Rajesh Agrawal, the Commerce Secretary of India, announced on May 15, 2026, that both nations are seeking a unique and creative solution to address these sticking points. The tension stems from UK policy scheduled for July 1, 2026, which will reduce tariff-free steel import quotas by 60%. Additionally, the UK intends to impose a 50% tariff on imports exceeding those limits for products that can be manufactured domestically.
These curbs potentially dilute market access benefits for Indian steel exporters. Both governments are currently engaged in discussions to resolve the conflict and operationalize the trade deal as soon as possible.