India wins duty-free access for 11 lakh tonnes of steel exports to UK

Indian exporters will be able to ship more than 11 lakh tonnes of steel to the UK every year without paying duty under the free trade agreement, which came into force on Wednesday, through a combination of country-specific and residual quotas, an official said.

The UK’s March steel safeguard measures had emerged as a major hurdle to implementing the Comprehensive Economic and Trade Agreement (CETA), which was signed on July 24, 2025.

The resolution of the issue cleared the way for the agreement to come into effect from July 15.

A total of 188 steel items, accounting for USD 137 million worth of steel exports from India to the UK, were covered under the safeguard measures.

India’s total steel exports stood at USD 960 million in 2025.

To protect the interests of Indian exporters, India held extensive discussions with the UK to reduce the impact of the steel safeguard measures.

Following consultations with stakeholders, India sought an increase in its quota under the UK’s steel measures.

After prolonged and intensive discussions at all levels, India secured improved market access and continuity for its steel exporters, the government official said.

“As a result of these successful negotiations, India’s total country-specific quota (CSQ) under the new framework stands elevated at 1,68,029 tonnes, seamlessly complemented by the exclusive 9.45 lakh tonnes under the Authorised Use Scheme (AUS),” an official said.

To reduce the potential impact on trade and maintain balance under the bilateral agreement, the UK expanded tariff-free access across key product categories.

For non-alloy and other alloy hot-rolled sheets and strips, India’s country-specific quota has nearly tripled from 12,405 tonnes to 33,456 tonnes.

In another boost for Indian exporters, the UK has reserved an exclusive 40 per cent of the quota under the AUS for India, amounting to around 9.45 lakh tonnes of dedicated trade volume.

Under Category 28 (non-alloy wire), market access has also been protected by removing nine commodity codes from the scope of the safeguard measures, ensuring that 95 per cent of India’s exports in this category remain free of restrictions.

The official added that India also secured greater access in key sub-categories. The residual quota under Category 12B (non-alloy merchant bars and light sections) increased to 4,540 tonnes from 468 tonnes, while the residual quota under Category 26 (other welded tubes) rose to 16,327 tonnes from 10,809 tonnes.