𝗜𝗻𝗱𝗶𝗮-𝗨𝗞 𝗙𝗧𝗔 𝗦𝗲𝗰𝘂𝗿𝗲𝘀 𝗦𝘁𝗲𝗲𝗹 𝗘𝘅𝗽𝗼𝗿𝘁 𝗣𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗼𝗻
India and the United Kingdom reached a deal regarding steel trade under the Comprehensive Economic and Trade Agreement.
Key details of the agreement:
- 85% of Indian steel exports stay outside new British steel safeguard measures.
- Protection includes country-specific quotas and residual quotas.
- The agreement uses an Authorised Use Scheme to shield Indian interests.
- The Comprehensive Economic and Trade Agreement starts on July 15.
UK steel safeguard rules:
- New rules begin on July 1, 2026.
- Tariff-free steel imports will have capped volumes.
- Total quota volumes will drop 60% compared to current limits.
- Imports exceeding the quota face a 50% tariff.
- These rules apply to steel products manufactured within the UK.
Future carbon tax concerns:
- The UK plans an Import Carbon Pricing Mechanism for 2027.
- This follows the European Union model.
- The tax may affect iron, steel, aluminium, fertiliser, and cement.
- The tax rate could reach 14% to 24% of import value.
- GTRI estimates $775 million in Indian exports face risk from this carbon tax.
- India sent $893.4 million of iron and steel products to the UK in 2025-26.
Source: The Times of India