UK Steel Import Caps and Carbon Measures Threaten India FTA Gains
newindianexpress.comThe UK is introducing a 60 percent reduction in tariff-free steel import quotas starting July 2026. This move, combined with a new carbon border adjustment mechanism similar to the EU's CBAM, creates a significant hurdle for the pending India-UK Free Trade Agreement. Indian exporters face potential 50 percent tariffs on steel imports exceeding the new quotas. These carbon-linked trade measures aim to penalize carbon-intensive goods, effectively offsetting the commercial benefits of the trade deal.
