UK Steel Curbs: 85% of India’s Exports Exempt, Remaining Protected by CETA Quota System.
Approximately 85 per cent of India’s steel exports to the United Kingdom have been granted exemption from Britain’s impending steel safeguard measures, according to an official announcement made on Thursday. These safeguards, initially set to apply broadly to all countries, will involve a 60 per cent reduction in duty-free steel import quotas effective July 1, leading to tariffs of 50 per cent on imports exceeding these limits. This outcome resolves a substantial barrier to the execution of the Comprehensive Economic and Trade Agreement (CETA), finalized on July 24, 2025, which is anticipated to be implemented by July 15.
This decision is significant for both the average citizen and the broader market. For Indian steel exporters, the exemption from safeguard measures means a substantial boost to competitiveness in the UK market, facilitating continued access to a lucrative export destination. On a micro level, this is expected to stabilize industry jobs and may potentially lead to lower steel prices domestically due to increased export resilience. Conversely, the safeguard measures still affecting 15 per cent of India’s $839 million steel exports to the UK could pose challenges, especially for sectors reliant on cost-effective imports of steel for construction and manufacturing.
In the long term, the Indian government and the Reserve Bank of India (RBI) are likely to focus on enhancing trade relations under the CETA framework while addressing the hurdles posed by the UK’s forthcoming Carbon Border Adjustment Mechanism (CBAM) set for 2027. With studies indicating that India’s exports worth $775 million could be influenced by the carbon tax, policymakers may consider negotiations aimed at ensuring compliance and competitiveness within these new regulations. Continuous engagement at platforms like the World Trade Organization (WTO) will be crucial in fostering a mutually beneficial environment for trade, balancing domestic needs with international obligations.
Source: The Hindu
(Expert Note: This report was independently prepared by the Wealthova Economy team.)