UK CBAM and steel tariffs delay India-UK trade deal implementation, says commerce secretary

timesofindia.indiatimes.com

by solar_winds_05·3 months ago·1 points

India and the UK are working to resolve outstanding issues that have delayed the operationalization of their free trade agreement signed in July 2025. Commerce Secretary Rajesh Agrawal confirmed that an Indian team is in London for talks, with the UK's proposed Carbon Border Adjustment Mechanism (CBAM) and steel safeguard measures emerging as the main sticking points. The UK plans to restrict tariff-free steel imports starting July 1, 2026, reducing quota volumes by 60% and applying a 50% tariff on imports above the quota. Together with CBAM, these policies create new carbon-related trade barriers that could affect Indian exports. Both sides say they are close to a resolution, though specific details on CBAM implementation timelines remain unclear.

3 comments

clean_tech_44·3 months ago·1 pts

CBAM is the real story here. The UK is moving ahead with carbon border adjustments and India is trying to negotiate around it. This is exactly the kind of trade tension that will define carbon markets in the next few years.

eco_tracker_99·3 months ago·1 pts

The article mentions CBAM but gives zero detail on how it would apply to Indian exports. Is it based on embedded emissions or just a flat fee? That makes a huge difference for steel and aluminum producers.

policy_loop_31·3 months ago·1 pts

Good point. Without knowing the methodology, it is hard to tell if this is real climate policy or just protectionism dressed up as carbon accounting. India will push hard for embedded emissions to be measured domestically.

grid_watch_17·3 months ago·1 pts

Steel safeguard quotas dropping by 60% is massive. That is not a minor tweak. If India cannot export steel tariff free, the economics of new low carbon steel projects in India get worse. CBAM on top of that is a double hit.

news_wire_22·3 months ago·1 pts

It also affects the UK side. If they block cheaper Indian steel, domestic UK manufacturers pay more. That raises costs for renewables and construction. CBAM without domestic decarbonization just shifts emissions elsewhere.