- The UK plans to cut tariff-free steel import quotas by 60 per cent from July 1, 2026.
- India and several other countries raised concerns during a WTO meeting in Geneva.
- Imports above the revised quota limits will face a 50 per cent tariff in Britain.
India has raised concerns at the World Trade Organization over the UK’s latest steel safeguard measures, in a move that could complicate the early implementation phase of the India-UK Comprehensive Economic and Trade Agreement (CETA).
The issue came up during the WTO Council for Trade in Goods meeting held in Geneva on May 20 and 21, where several countries questioned Britain’s decision to tighten restrictions on steel imports. The UK steel import curbs, which are due to take effect from July 1, 2026, will sharply reduce the amount of steel that can enter Britain tariff-free, making it a growing concern for exporters including India.
Under the revised safeguard system, the UK plans to reduce existing tariff-free steel import quotas by 60 per cent. Imports exceeding those limits will attract a 50 per cent tariff. The restrictions will apply to steel products that Britain says can already be manufactured domestically.
According to a Geneva-based official, India joined Brazil, Turkiye, Switzerland and Australia in expressing concern over the proposed measures. Japan and South Korea, which reportedly initiated discussions on the matter, also questioned the UK’s position.
A trade deal meets an old industrial problem
The development is now emerging as an early friction point in the India-UK CETA, signed on July 24, 2025, which was expected to deepen trade flows between the two countries.
India exported around £663 million ($893.4 million) worth of iron, steel and related products to the UK during the 2025-26 financial year. The sector accounts for a notable share of India’s broader merchandise exports to Britain, which stood at roughly £9.9 billion ($13.4 billion).
Trade observers suggest the timing of the move may attract closer scrutiny because the UK has simultaneously been positioning itself as a stronger post-Brexit trading partner for India and other Asian economies.
Britain already operates steel safeguard measures through quota systems. However, the latest proposal further tightens those limits at a time when several economies are dealing with weaker global demand and concerns over industrial overcapacity.
Britain defends move as pressure builds globally
The UK, meanwhile, defended the measures during the WTO discussions, reportedly saying the restrictions are necessary to protect domestic industry from global oversupply and wider security risks linked to steel production.
British officials reportedly argued that without intervention, the country risked becoming the first G7 economy without primary steelmaking capability.
The UK also told WTO members it plans to remain engaged with affected countries as discussions continue.
The WTO Council for Trade in Goods oversees global rules linked to tariffs, subsidies, anti-dumping duties, customs valuation and import regulations. While such meetings rarely produce immediate outcomes, disputes raised there often signal larger trade tensions building in the background.
