The parties are negotiating a resolution to this issue

The free trade agreement between India and the United Kingdom, which was originally scheduled to take effect by May, has hit a snag due to new British restrictions on steel imports. This was recently stated by Indian Trade Minister Rajeev Agrawal, according to Reuters.

According to him, the countries are close to implementing the agreement, but there are several complex issues. Agrawal added that the steel measures were not taken into account during the negotiations.

In March of this year, the UK announced stricter measures on steel imports to protect its domestic industry from a sharp increase in supplies from abroad. The new regime will take effect on July 1.

The restrictions could negate the benefits of access to the British market for countries such as India. The country’s steelmakers were expected to benefit from lower tariffs under the agreement.

Agraval said that the parties are negotiating to resolve this issue and, in his words, “find a creative solution.”

The agreement between India and the UK, signed last year, is intended to promote bilateral trade and improve mutual market access across various sectors.

As a reminder, starting July 1 of this year, the UK’s steel import quotas will be reduced by 60% compared to current agreements, and tariffs on shipments exceeding the quota will increase from 25% to 50%. The new strategy will also be aligned with investments in the transition to green steel, as well as in other areas that will ensure domestic production meets the highest global standards.