India-U.K. trade deal hits late-stage ‘sticking points’ just before implementation date

Earlier in the year, Commerce Minister Piyush Goyal had expressed his confidence that the CETA, signed in July 2025, would be implemented in May 2026. Photo: DPR PMO/ANI Photo The implementation of the India-U.K. trade deal has hit a late-stage hiccup due to a new regulation on steel imports the U.K. has said it will implement from July 1, which was not part of the trade negotiations. The India-U.K. Comprehensive Economic and Trade Agreement (CETA) was expected to come into force in May 2026, but now the two sides are trying to work out a “creative solution” to ensure the deal is implemented “at an early date”, Commerce Secretary Rajesh Agrawal told reporters on Friday (May 15, 2026). Also read: What does the new U.K.-India trade deal entail? | Explained The U.K., as part of its overall Steel Strategy, earlier this month announced that from July 1 onwards it will significantly reduce the volume of steel that can be imported into the country tariff‑free. “Overall quota volumes will be cut by approximately 60% compared to the current safeguard arrangements,” the U.K. government said. “Once the reduced quotas are exhausted, imports will be subject to a 50% tariff, an increase from the current 25% above‑quota tariff.”That is, the quota for duty-free steel imports would be cut by 60% and the tariff on above-quote imports would be doubled to 50%. “We are very near to operationalising the India-UK FTA,” Mr. Agrawal said. “There are a few sticking points. The U.K. has come ahead with a steel measure recently which was not factored in while negotiating the India-U.K. FTA. We are working together to find a creative solution around this trade measure also so we can operationalise the India-U.K. CETA at an early date.”Earlier in the year, Commerce Minister Piyush Goyal had expressed his confidence that the CETA, signed in July 2025, would be implemented in May 2026. Published - May 15, 2026 04:31 pm IST