India secures steel export safeguards in UK trade agreement

India and the UK signed a Comprehensive Economic and Trade Agreement, coming into force July 15, with 85% of India's steel exports kept outside the scope of upcoming UK steel measures, India's Ministry of Commerce and Industry said June 17.

The steel provision is a central metals-sector element of the agreement, aimed at protecting bilateral steel trade, minimizing market disruption and maintaining a stable trading environment for exporters, the ministry said.

For steel lines covered by those measures, India's interests will be protected through a mix of country-specific quota, residual quota access and the UK's Authorized Use Scheme, the ministry said.

The UK's steel measures are due to take effect July 1, and will reduce tariff-free quotas by 60%, with an 50% duty imposed on shipments beyond the limit.

In FY 2025-26 (April-March), India's steel exports to the UK stood at 140,000 metric tons, out of a total export volume of 6.6 million mt, according to the Ministry of Steel.

The steel arrangement comes as part of a broader trade pact that will provide duty-free access for about 99% of India's exports to the UK, covering nearly all trade value.

For India's industrial exporters, CETA will eliminate UK tariffs across several sectors, with duties up to 18% on engineering goods and auto components cut to zero, while tariffs on chemicals and pharmaceutical products of up to 8% also will be removed, the ministry said.

CETA builds on the India-UK Enhanced Trade Partnership launched in May 2021 and the India-UK Roadmap 2030, which set a target of increasing bilateral trade to $100 billion by 2030, the ministry said.

"We are bringing our landmark trade deal with India into force as quickly as we can, because we want businesses and the public to feel the benefits immediately, including cuts to tariffs of £400m within the first year alone," UK's Business and Trade Secretary Peter Kyle said.

The pact covers 30 chapters and includes provisions on goods, services, digital trade, telecommunications, financial services, intellectual property, government procurement, innovation, small and medium-sized enterprises, sustainability and transparency.

The ministry added that India had retained protections for sensitive sectors, including dairy products, cereals, millets, edible oils, oilseeds, apples and several vegetable products.

"A historic milestone for India-UK relations," India's Prime Minister Narendra Modi said. "Both PM Starmer and I, who are in Evian for the G7 Summit, are naturally very happy with the significant momentum being added to our economic ties."

Platts, part of S&P Global Energy, assessed hot-rolled coil in Northwest Europe at Eur680/metric ton ex-works Ruhr on June 17, stable on the day.

Platts assessed HRC India Dom Ex-works Mumbai at $613/mt June 17, up 30 cents/mt day over day.