Concerns Over UK's Steel Safeguard Measures
India has raised issues in a key World Trade Organisation (WTO) meeting in Geneva regarding the UK's new steel safeguard measures. These measures, effective from July 1, 2026, will limit tariff-free steel imports by reducing quotas by 60%, with a 50% tariff on imports exceeding these quotas.
International Response
- Countries like India, Brazil, Turkiye, Switzerland, and Australia have expressed concerns over the UK's planned action.
- Japan and Korea initiated discussions and have also flagged issues.
Impact on India-UK Trade
India's exports of iron, steel, and related products to the UK were valued at USD 893.4 million in 2025-26, a significant portion of the total USD 13.4 billion merchandise exports to the UK.
WTO Council for Trade In Goods
- The issues were raised during the WTO's Council for Trade In Goods meeting on May 20-21.
- This council oversees the implementation of agreements related to trade in goods, covering tariffs, import rules, subsidies, and more.
UK's Justification
- The UK claims that the measures are necessary for industrial protection against global overcapacity and security concerns.
- Without these measures, the UK risked losing its primary steelmaking capability.
- The UK intends to engage fully with the affected countries.
India-UK Comprehensive Economic and Trade Agreement (CETA)
The steel safeguard issue has become a contentious point in the implementation of the India-UK CETA, signed on July 24, 2025.
