India and UK officials meet to resolve trade pact disputes
India and the UK are trying to iron out some tough issues before their big trade deal, the trade pact, can actually kick in.
Top officials met on Tuesday to figure out what's causing delays.
India's Commerce Secretary Rajesh Agarwal stressed that both sides are committed to working through these challenges together, saying, "Engaged in extensive discussions with UK Permanent Secretary Ms. Amanda Brooks on #IndiaUKCETA implementation. Took stock of progress and worked through the sticking points, while exploring new pathways under #IndiaUKCETA #GlobalTrade #EconomicPartnership aligned with #ViksitBharat. Reaffirmed commitment to regular engagement with @UKGovScotland @TradeGov for effective implementation,"
UK steel quotas cut, CBAM threat
Two major sticking points: The UK plans to slash tariff-free steel import quotas by 60% from July 2026, which could seriously hit Indian steel exports (worth nearly $900 million in 2025-26).
Plus, a new carbon tax called CBAM is set for 2027 and could add up to a 24% tax on imports like steel and cement, impacting about $775 million of Indian exports every year.
If things don't get sorted soon, India might rethink duty concessions on British favorites like Scotch whisky.