The trade agreement between the UK and India will come into force in July

The free trade agreement between the UK and India is set to come into force on 15 July this year – the Indian side has stated that its concerns regarding future UK protective measures on steel have been addressed. This was reported by Reuters.

The countries agreed on this move following talks between UK Prime Minister Keir Starmer and his Indian counterpart Narendra Modi at the G7 leaders’ summit in France.

India had previously raised the possibility of revising or postponing the implementation of the agreement due to concerns over the impact of new UK protective measures on steel trade, which are due to come into force on 1 July.

On 17 June, the Indian government stated that 85 per cent of Indian exports would not be affected by these UK steel measures, and that goods covered by them would have market access through quotas and other mechanisms.

A UK official had previously stated that negotiations on the implementation of the free trade agreement were being conducted separately from steel-related issues. The UK government’s latest statement made no reference to any separate agreement on steel products.

The Comprehensive Economic and Trade Agreement (CETA) between the parties was signed in July 2025 and was due to come into force in April or early May of this year; however, the UK’s new steel import regulations have proved to be an obstacle.

The statement from the Indian Ministry of Commerce and Industry also provides no details on what exactly the resolution of the issue of UK steel tariffs will entail. It states that both sides have mutually agreed to protect commercial interests, minimise market disruptions and ensure an overall balanced and stable trading environment for exporters.

It is also noted that such protection will be achieved through a combination of country-specific quotas, residual quotas and access under the Authorised Use Scheme (AUS).

As reported by SteelOrbis, India had insisted on a steel quota worth $900 million per year. As government sources noted, the Indian government approached London with a request to ensure that the country’s quota was at least equivalent to the three-year average of steel product exports to the UK.

It should be recalled that British businesses are calling on the government to ease protective measures on steel. Leading business associations argue that the new measures will significantly undermine the competitiveness of the country’s manufacturers.