The Indian government is considering the withdrawal of tariff concessions granted in the recently concluded free trade agreement (FTA) signed with the UK in retaliation for the latter’s safeguard duties on steel imports, impacting India’s shipments of steel products to the UK, Indian government sources said on Wednesday, June 3.
India has already conveyed its concerns to the UK through the appropriate diplomatic channels about the new steel safeguard measures which entail a sharp reduction in duty-free import quotas and the imposition of a 50 percent tariff on shipments exceeding these limits, potentially impacting Indian steel exports to the UK, the sources said.
The India-UK free trade deal, signed in May last year and expected to take effect this year, has run into hurdles after the UK proposed stricter safeguards on steel imports to protect its domestic industry.
“So, the ball is now in the UK’s court. If they do not leverage their free trade agreement with us, we can always reconsider concessions we have offered under the same agreement,” an Indian government official said.