The UK’s decision to cut tariff-free steel import quotas by 60% from July 1, 2026, has become a sticking point for the India-UK Comprehensive Economic and Trade Agreement (CETA). London is effectively following the EU’s protectionist steel model by combining safeguard restrictions with carbon-linked border taxes.
“We are very near to operationalising that. There are a few sticking points, as you are aware, the UK has come ahead with a steel measure recently, which was not factored in while negotiating the India-UK deal. We are working together to find a unique, creative solution around the steel measure also so that we can operationalise the India-UK CETA at an early date,” Agrawal said.
The CETA was signed in July 2025.
US trade talks
The next round of meeting between officials of India and the US for finalising an interim trade agreement based on the framework announced in February will be held next month.
“The Indian team had visited the US last month and they had very good discussions. And we expect the US team to visit us soon. The dates for the same have not yet been finalised,” Agrawal said.
“But I expect it will happen soon. Not this month, but it will happen sometime next month,” he said, adding that India is engaged with the US on a trade deal and that it would be signed at an opportune time.
India’s exports to the US grew 1.1% on-year to $8.47 billion in April. Imports fell 4.67%.
On the US’ Section 301 probes on forced labour and oversupply, Agrawal said: “We have joined the consultations which took place yesterday in the US on both these investigations. So, I think once the consultation process is over, it is for the US to determine the next steps under the 301.”
Export target
Agrawal said the ministry will work towards pushing the overall exports to $1 trillion in 2026-27. The ₹25,060 crore export promotion mission and FTAs will help push shipments this year.
“New operational agreements will create opportunities for our exporters, which they are already working around to see how best we can leverage it. We are looking forward to the operationalisation of some of these FTAs in the next few months…Overall, in an uncertain environment, the supply chains get recalibrated,” he said.
Other FTAs
The next round of review to upgrade the India-Korea Comprehensive Economic Partnership Agreement is scheduled for May 25-27. India has also signed the terms of reference (ToR) for a trade pact with the Maldives and the Gulf Cooperation Council, and finalised the ToRs for a preferential trade pact with the Philippines, which were adopted through diplomatic exchanges.