Implementation of the India–UK Free Trade Agreement has encountered new challenges after the United Kingdom introduced tighter safeguard measures on steel imports.
According to Rajesh Agarwal, while the agreement is close to becoming operational, steel trade restrictions have emerged as a key unresolved issue.
The UK announced stricter steel import safeguards in March 2026, with the new regime scheduled to take effect on July 1, 2026.
Under the updated system:
- Tariff-free quotas for steel imports will be reduced
- Higher duties will apply to shipments exceeding quota limits
The measures could significantly affect Indian steel exporters, who were expected to benefit from improved market access under the FTA.
Indian officials stated that both governments are actively working toward “a creative solution” to resolve the issue and ensure the agreement can move forward.
The FTA, signed last year, is designed to strengthen bilateral trade and expand market access across multiple sectors.
VietnamSteel by Hoa Sen Group
