India-UK FTA: Major Breakthrough as 85% of Steel Exports Shielded

In a significant win for Indian exporters, the India-UK Free Trade Agreement (FTA) has successfully navigated one of its most contentious hurdles: the UK's upcoming steel safeguard measures. This landmark consensus ensures that the vast majority of India's steel shipments will remain protected from restrictive British trade curbs.

A Strategic Win for Indian Steel Exporters

The implementation of the Comprehensive Economic and Trade Agreement (CETA) is set to begin on July 15, following a breakthrough regarding the UK's proposed steel safeguard regime. Previously, this regime was a major sticking point in the trade pact signed on July 24, 2025.

Official statements confirm that 85% of India's steel exports are now exempt from these new measures. To protect Indian commercial interests, a sophisticated mechanism has been established, utilizing a combination of Country-Specific Quotas (CSQ), residual quotas, and access under the Authorised Use Scheme (AUS). This arrangement aims to minimize market disruptions and maintain a balanced trading environment for Indian manufacturers.

Understanding the New UK Steel Regime

The resolution comes ahead of the UK's new steel measures, which are scheduled to take effect on July 1, 2026. The British government is tightening its previous safeguard regime, which formerly operated on simple import quotas.

Under the revised framework, the volume of tariff-free steel imports will be strictly capped, with overall quota volumes being slashed by 60% compared to the existing mechanism. Any imports that exceed these designated quotas will be hit with a heavy 50% tariff. These restrictions are specifically designed to apply to steel products that can be manufactured domestically within the United Kingdom.

The Looming Challenge of Carbon Border Taxes

While the steel quota issue has been resolved, a new economic challenge is on the horizon: Britain's Import Carbon Pricing Mechanism, similar to the European Union's Carbon Border Adjustment Mechanism (CBAM). Scheduled to come into force in 2027, this carbon tax could pose a significant threat to Indian industrial exports.

ಗ್ಲೋಬಲ್ ಟ್ರೇಡ್ ರಿಸರ್ಚ್ ಇನಿಶಿಯೇಟಿವ್ (GTRI) ಪ್ರಕಾರ, ಅಂದಾಜು 775 ಮಿಲಿಯನ್ USD ಮೌಲ್ಯದ ಭಾರತೀಯ ರಫ್ತುಗಳು ಈ ಕಾರ್ಯವಿಧಾನದಿಂದ ಪ್ರಭಾವಿತವಾಗಬಹುದು. ಈ ತೆರಿಗೆಯು ಕಬ್ಬಿಣ, ಉಕ್ಕು, ಅಲ್ಯೂಮಿನಿಯಂ, ರಸಗೊಬ್ಬರ, ಸಿಮೆಂಟ್, ಹೈಡ್ರೋಜನ್ ಮತ್ತು ಗಾಜಿನಂತಹ ವಲಯಗಳನ್ನು ಗುರಿಯಾಗಿಸುತ್ತದೆ ಎಂದು ನಿರೀಕ್ಷಿಸಲಾಗಿದೆ. ಎಮಿಷನ್ಸ್ ಟ್ರೇಡಿಂಗ್ ಸ್ಕೀಮ್ (ETS) ಅಡಿಯಲ್ಲಿನ ಉಚಿತ ಸೌಲಭ್ಯಗಳನ್ನು ಹಂತ ಹಂತವಾಗಿ ರದ್ದುಗೊಳಿಸಿದ ನಂತರ, ಈ ತೆರಿಗೆಯು ಆಮದು ಮೌಲ್ಯದ 14% ರಿಂದ 24% ರಷ್ಟಿರಬಹುದು. 2025-26ರಲ್ಲಿ ಯುಕೆಗೆ ಭಾರತದ ಕಬ್ಬಿಣ ಮತ್ತು ಉಕ್ಕು ರಫ್ತುಗಳು 893.4 ಮಿಲಿಯನ್ USD ಇವೆ ಎಂಬ ಅಂಶವನ್ನು ಗಮನದಲ್ಲಿಟ್ಟುಕೊಂಡು, ಈ ಇಂಗಾಲಕ್ಕೆ ಸಂಬಂಧಿಸಿದ ವೆಚ್ಚಗಳನ್ನು ನಿಭಾಯಿಸುವುದು ಭಾರತೀಯ ವ್ಯಾಪಾರ ಮಾತುಕತೆದಾರರಿಗೆ ಪ್ರಮುಖ ಆದ್ಯತೆಯಾಗಿದೆ.

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