India-UK Trade Talks Progressing To Resolve Steel Safeguard And CBAM Hurdles, Says Official
The safeguard measure and the UK's carbon border adjustment mechanism (CBAM) have become a sticking point in the implementation of the Comprehensive Economic and Trade Agreement (CETA), which was signed on July 24, 2025.
New Delhi: Talks between India and the UK are progressing well to resolve certain outstanding issues, including Britain's steel safeguard measure, for the implementation of the free trade agreement, an official said on Monday.
The safeguard measure and the UK's carbon border adjustment mechanism (CBAM) have become a sticking point in the implementation of the Comprehensive Economic and Trade Agreement (CETA), which was signed on July 24, 2025. “Talks are going on, and the progress is good. We have ironed out one of the three issues,” the official said.
On the second and third issue, the official said, the UK has given us some proposals and India has given some counter questions. “Both teams are working on that…” he said.
India and the Joint Economic and Trade Committee (JETCO) meeting is expected to be held later this month in Britain. On June 2, Goyal held talks with UK Secretary of State for Business and Trade Peter Kyle on these issues.
When asked if Commerce and Industry Minister Piyush Goyal will travel to London, the official said: “If things get ironed out, then maybe,” the official said. From July 1, 2026, the UK will limit tariff-free steel imports, reducing overall quota volumes by 60 per cent compared to the steel safeguard measure. Any imports above these levels will then face a 50 per cent tariff.
The measure will apply to imports of steel products that can also be made in the UK.
Earlier, Britain had safeguard measures that also imposed import quotas. The new measures reduce that quota. The UK government in December 2023 also decided to implement its Carbon Border Adjustment Mechanism (CBAM) starting in 2027