- India may review UK tariff concessions if steel safety concerns are not addressed
- The India-UK free trade agreement includes phased tariff cuts on Scotch whisky
- British Trade Secretary Peter Kyle will meet India's Commerce Minister Piyush Goyal
In advance of new bilateral trade negotiations, an Indian official stated on Monday that if London does not address New Delhi's concerns on its steel safety measures, India may review tariff concessions granted to Britain on goods like Scotch whisky.
The free trade agreement between India and the UK, which was agreed in May of last year and is scheduled to go into effect this year, has encountered difficulties after Britain suggested more stringent checks on steel imports in order to protect its own sector.
An Indian trade official told reporters on Monday, "So now the ball is in their (UK) court." "If they do not leverage their ​free trade agreement, we can always reconsider the concessions we offered."
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On Tuesday, British Trade Secretary Peter Kyle is scheduled to visit India to meet with Commerce Minister Piyush Goyal.
India committed to lowering its tariffs on Scotch whisky from 150% to 75% at first and then to 40% over a 10-year period as part of the trade agreement.
In addition to increasing market access for companies in the world's fifth and sixth-largest economies, the agreement calls for both sides to lower tariffs on a variety of items, including vehicles, whisky, and textiles.
By 2040, the two nations anticipate that the deal will increase bilateral commerce by an extra 25.5 billion pounds ($34 billion).
India has protested Britain's steel safeguards, claiming they would limit Indian goods' access to markets. Although both sides are working to implement the trade agreement, the issue, which is centred on tariff-free quotas and additional levies on select steel imports, is creating new uncertainty for Indian exporters, Reuters reported, while quoting an official.
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Concerns about Britain's new tariff-free steel import limitations have been voiced at the World Trade Organization by India, Brazil, Turkey, Japan, South Korea, Switzerland, and Australia.
As part of its efforts to cut carbon emissions, Britain has also suggested enforcing border controls connected to carbon, opening a new tab on imports of goods like iron and steel, aluminium, cement, and fertilisers on January 1, 2027.
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