India and the UK are engaged on a artistic answer to the UK metal safeguard measure, which has slowed steps to operationalise the India-UK CETA signed on 24 July 2025. Commerce Secretary Rajesh Agrawal stated talks goal to resolve remaining sticking factors earlier than UK limits on tariff-free metal imports take impact from 1 July 2026.
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India and the UK try to resolve issues linked to Britain’s new metal safeguard measure. The problem is slowing the beginning of the Complete Financial and Commerce Settlement CETA. Commerce Secretary Rajesh Agrawal stated officers are shut to creating the deal energetic. Nonetheless, either side should settle remaining considerations round metal guidelines.
“We’re very close to to operationalising that. There are a number of sticking factors, as you’re conscious, the UK has come forward with a metal measure not too long ago, which was not factored in whereas negotiating the India-UK deal. We’re working collectively to discover a distinctive, artistic answer across the metal measure additionally in order that we will officialise the India-UK CETA at an early date,” Commerce Secretary Rajesh Agrawal advised reporters right here.
India-UK CETA talks concentrate on UK metal safeguard measure
The 2 international locations signed the pact on July 24, 2025. Underneath the settlement, 99 per cent of Indian exports will enter the UK duty-free. India will even decrease tariffs on British items resembling automobiles and whisky. But the UK metal safeguard measure has raised new considerations, because it arrived after talks ended.
From 1 July 2026, the UK will cap tariff-free metal imports extra tightly. The general quota volumes will fall by 60 per cent from the present metal safeguard measure. Imports above the quota will face a 50 per cent tariff. The rule will cowl metal gadgets that may also be produced inside the UK.
India-UK CETA timeline is dependent upon entry into pressure date
The CETA cleared scrutiny in each homes of the UK Parliament in March. In India, commerce agreements want Union Cupboard approval. After home steps end, either side should set the Entry into Power EIF date. Officers haven’t introduced that date, as they proceed talks on the steel-related sticking level.
India’s exports of iron and metal and associated merchandise to the UK reached USD 893.4 million in 2025-26. That fashioned a notable a part of India’s USD 13.4 billion merchandise exports to the UK. Earlier, Britain used safeguard measures that set import quotas. The newer method retains quotas however cuts the allowed volumes.
India-UK CETA commerce targets face considerations flagged by GTRI
Each governments need to double bilateral commerce from USD 56 billion by 2030. Nonetheless, suppose tank GTRI stated the UK’s 60 per cent lower in tariff-free metal quotas might complicate the India-UK Free Commerce Settlement. GTRI stated London is pairing safeguards with carbon-linked border taxes, just like the EU method.
“The UK is now transferring in the identical course by means of tighter quotas, safeguard measures and its personal CBAM-style framework, GTRI Founder Ajay Srivastava stated.Such insurance policies considerably cut back the actual business worth of FTAs. UK might, nonetheless, press India to increase the identical phrases it agreed with the EU, he added.”
For now, Indian and UK officers are persevering with talks to handle the UK metal safeguard measure. The goal is to agree on a workable answer and finalise the Entry into Power EIF date. The July 1, 2026 quota change stays central to the discussions, given the scale of metal exports inside India-UK commerce.
With inputs from PTI
