India flags UK steel curbs

India used a World Trade Organization meeting in Geneva this week to challenge Britain’s tighter steel-import safeguards, turning a bilateral trade irritant into a formal multilateral dispute. The complaint centers on UK measures due to take effect on July 1, 2026, which Indian officials say would sharply reduce the amount of steel that can enter tariff-free and raise costs on shipments above quota. The issue matters for India because steel exports to Britain were worth about $893.4 million in 2025-26, according to an official cited by The Hindu BusinessLine. It also matters because the same dispute has become a sticking point in bringing the India-UK trade pact into force. ### What exactly did India object to in Geneva? The WTO’s Council for Trade in Goods met on May 20-21, and India used that forum to flag concerns over the UK’s latest steel safeguard measures. According to officials cited by The Hindu BusinessLine, New Delhi said Britain’s decision would tighten existing import restrictions by sharply reducing tariff-free access from July 2026. Britain’s revised regime would cut overall tariff-free steel quota volumes by 60% from July 1, 2026, according to Indian officials and trade sources cited in the reports. Any imports above those levels would face a 50% tariff, and the measures would apply to steel products that can also be produced in the UK. (thehindubusinessline.com) ### Which countries lined up against the UK move? Japan and South Korea initiated discussion of the issue at the WTO meeting, according to a Geneva-based trade official cited by The Hindu BusinessLine. India, China, Brazil, Australia, Switzerland and Turkiye supported those objections, the report said, showing that the pushback extended beyond one bilateral dispute. (thehindubusinessline.com) Several governments argued that concerns about global steel overcapacity should be addressed at the source rather than through new import restrictions, according to the same report. They also questioned whether the UK approach was consistent with WTO rules on safeguards. (thehindubusinessline.com) ### Why does this matter for India’s trade deal with Britain? India and the UK signed their Comprehensive Economic and Trade Agreement on July 24, 2025, but the pact has not yet been operationalized, according to The Hindu BusinessLine. Indian officials say the steel measure was not factored into those negotiations, even though Britain had promised tariff elimination on 99% of goods. (thehindubusinessline.com) Commerce Secretary Rajesh Agrawal said last week that the two sides were working on a “creative solution” around the steel measure so the agreement could be operationalized early. One industry source cited by The Hindu BusinessLine said the bilateral fix under discussion could involve an India-specific quota inside the UK’s new framework. (thehindubusinessline.com) ### What is Britain saying in response? The UK told WTO members that the measures were legitimate and necessary to protect domestic steelmaking capability, according to officials cited in the Indian reports. Britain argued that without the safeguards it was on track to become the first G7 country without primary steelmaking capacity. (thehindubusinessline.com) The British government had already announced on June 30, 2025 that it was strengthening steel safeguards from July 1, saying the changes would cap some import levels, tighten country-specific limits and protect UK producers from surges in cheap imports. Business and Trade Secretary Jonathan Reynolds said at the time that the government was “unapologetic” in backing the UK steel sector. (thehindubusinessline.com) ### What happens next? July 1, 2026 is the next key date because that is when the tighter UK steel measures are due to take effect, according to the Indian and British accounts. Before then, India and the UK are continuing bilateral talks on a possible workaround linked to implementation of their trade agreement, while the WTO challenge has now put the dispute on record in Geneva. (thehindubusinessline.com) (gov.uk)