India has sought a steel quota worth $900 million per year from the UK to resolve the logjam in implementing the free trade agreement (FTA) signed between the two countries last year, Indian government sources said on Wednesday, June 17.
The move by the Indian government comes in the wake of the UK proposal on new steel safeguard measures which entail a sharp reduction in duty-free import quotas under the proposed FTA and the imposition of a 50 percent tariff on shipments exceeding these limits, potentially impacting Indian steel exports to the UK.
The sources said that the Indian government has asked the UK to ensure that the quota for India is at least equivalent to the three-year average of India’s steel and steel product exports to the UK, which works out to around $900 million at present.
The quota announced by the UK, which is set to come into effect from July 1, is far below that level, and the Indian steel industry will end up suffering despite the FTA. The industry would end up taking a large hit in at least six categories where India has a significant export interest and Indian exports to the UK are far higher than their proposed quota, the sources said.
