Commerce Secretary Rajesh Agrawal said that the Indian team is already in London to take forward the discussions and see that “we are able to operationalise” the deal.
Also Read: India, UK discuss collaboration in tech, research, startups
“There are certain issues which have come up after the deal has been signed. Those issues are under resolution,” he told reporters here.
UK Secretary of State for Business and Trade Peter Kyle held a meeting with Commerce and Industry Minister Piyush Goyal on these issues earlier this month.
“So, we are very close on all these issues, and we hope there will be a resolution,” he said.
These issues include the UK’s steel safeguard measure and carbon Border Adjustment Mechanism (CBAM). These issues have become a sticking point in the implementation of the Comprehensive Economic and Trade Agreement (CETA), which was signed on July 24, 2025.From July 1, 2026, the UK will limit tariff-free steel imports, reducing overall quota volumes by 60 per cent compared to the steel safeguard measure. Any imports above these levels will then face a 50 per cent tariff.
The measure will apply to imports of steel products that can also be made in the UK.
Earlier, Britain had safeguard measures that also imposed import quotas. The new measures reduce that quota.
In December 2023, the UK government also decided to implement its Carbon Border Adjustment Mechanism (CBAM) starting in 2027.
Also Read: India, UK talks progressing on resolving issues for trade pact implementation: Official
According to economic think tank GTRI, India’s exports worth USD 775 million to the UK could be impacted due to Britain’s decision to introduce a carbon tax on products like iron and steel, aluminium, fertiliser and cement from 2027.
The UK, after the European Union (EU), will be the second economy to implement CBAM. The UK calls the move the import carbon pricing mechanism, which will initially focus on sectors such as iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass and cement.
This tax could range from 14-24 per cent of the import value on full phase-out of free allowances under the ETS (Emission Trading System).
India’s exports of iron and steel, and allied products to the UK stood at USD 893.4 million in 2025-26.
EU’S PROPOSED SANCTIONS PACKAGE ON RUSSIA:
On the issue of the European Commission’s proposed sanctions on Russia, which also include certain Indian entities, Agrawal said that India is engaged with the EU on the matter.
“We are engaged, and we are looking at what best can be done. But as you recall, India normally recognises the UN sanctions,” he said, adding that in the past, also some companies have faced sanctions due to different reasons.
As per reports, certain Indian firms are among 50 companies that could face fresh EU export-control restrictions under the bloc’s proposed 21st sanctions package against Russia.