About 85 per cent of India's steel exports to the UK have been exempted from Britain's upcoming steel safeguard rules, while market access for the remaining shipments has been secured through a mix of measures such as country-specific and residual quotas under the bilateral trade pact, an official said on Thursday.

The UK's recent steel safeguard measures had become a major sticking point in implementing the Comprehensive Economic and Trade Agreement (CETA), which was signed on July 24, 2025.

The resolution of the issue has paved the way for the implementation of the agreement from July 15.

Announced in March, the UK's steel safeguard measures apply to all countries. The norms will cut duty-free steel import quotas by 60 per cent from July 1, with imports above the prescribed limits subject to a 50 per cent tariff from 25 per cent at present.

The step was announced to protect their domestic firms from global overcapacity.

The protective measure will affect 15 per cent of India's $839 million in exports to the UK from the sector.

Overall, 188 items accounting for $137 million worth of steel exports from India to Britain were covered by these safeguard measures, but these products will now also gain access under the trade pact, the official said.

Apart from country-specific quotas, exporters can also access residual quotas, which are generally allocated on a first-come, first-served basis and are open to competition among supplying countries.

In addition, Indian exporters will have access to the Authorised Use Scheme (AUS), which allows certain industries or businesses to import steel at reduced or zero duty, provided the material is used strictly for an approved end-use.

Imports exceeding the permitted quota would face tariffs of 50 per cent, compared to the 25 per cent currently.

Even as the talks were underway, India flagged its concern over the UK's proposal at a meeting of the World Trade Organization (WTO) Council for Trade in Goods on May 20-21.

The official said that the WTO is a parallel discussion, but the issue will be settled in light of what is finally agreed in the bilateral negotiations.

In December 2023, the UK government also decided to implement its Carbon Border Adjustment Mechanism (CBAM) starting in 2027.

According to the economic think tank GTRI, India's exports worth USD 775 million to the UK may be affected by Britain's decision to introduce a carbon tax on products such as iron and steel, aluminium, fertiliser, and cement from 2027.

The UK, after the European Union (EU), will be the second economy to implement CBAM.

Published on June 18, 2026