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

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.