India-U.K. trade deal hits late-stage 'sticking points' just before implementation date

📌 Summary:

• India-U.K. Comprehensive Economic and Trade Agreement (CETA), expected to take effect in May 2026, has hit late-stage sticking points and may be delayed
• Trigger: U.K. announced (early May 2026) a new Steel Strategy reducing tariff-free steel-import quotas by ~60% from July 1, with imports exceeding the quota attracting a 50% tariff
• This was NOT part of the original CETA trade negotiations, raising concerns about Indian steel exporters' market access to the U.K.
• Commerce Secretary Rajesh Agrawal said the two sides are working on a "creative solution" to ensure implementation "at an early date"
• Broader concern: unilateral non-tariff regulatory measures (steel safeguards, carbon border adjustments) can erode FTA benefits even before they take effect

🎯 UPSC Relevance: GS2 — India and bilateral agreements; GS3 — Effects of liberalisation on the economy; non-tariff barriers; FTA negotiation strategy

📝 Prelims Facts:

• CETA = Comprehensive Economic and Trade Agreement (India-U.K.)
• Originally signed: July 24, 2025 in London during PM Modi's visit
• Expected to come into force: May 2026
• Commerce Secretary: Rajesh Agrawal
• U.K. Steel Strategy proposes ~60% cut in tariff-free quotas from July 1, 2026; 50% tariff beyond quota

🔑 Key Term: Non-Tariff Barrier (NTB) — Regulatory measures (e.g., quotas, safeguards, technical standards, environmental rules) that restrict imports without imposing direct tariffs; can offset FTA tariff concessions.