India-UK free trade agreement (FTA) scheduled to come into effect this month has hit a roadblock over the UK’s new steel import policy, Secretary of Commerce and Industry Rajesh Agarwal said in a statement on Monday, May 18.
He said that the India-UK FTA is near operationalization, but there were a few ‘sticking points’ like measures on steel trade which were not factored in during negotiations.
The UK in March this year unveiled stricter safeguards on steel imports as part of efforts to shield its domestic industry from a surge in global supply. The new regime, set to take effect from July 1, 2026, would sharply reduce tariff-free quotas and impose steep duties on shipments beyond those limits, potentially impacting exporters.
The curbs could dilute market access benefits for countries such as India, whose steelmakers were expected to gain from tariff reductions under the FTA.
Agrawal said both sides were engaged in discussions to address the issue.
"We are working together to find a creative solution around the steel measure and operationalize the agreement at an early date," he said.
India-UK FTA was signed last year with the aim of boosting bilateral trade between the two countries and improving market access across sectors.