India-UK FTA talks advance as Piyush Goyal meets Peter Kyle amid steel tariff concerns

As negotiations continued on the UK-India trade deal with the UK Business and Trade Secretary Peter Kyle meeting Commerce and Industry Minister Piyush Goyal in New Delhi on Tuesday, the UK Parliament also saw a question on the issue.
 
“Delighted to welcome my friend, UK Secretary of State for Business and Trade Peter Kyle, and his delegation to India. Had great conversations on charting the next phase of India-UK economic engagement, advancing shared business priorities, and further strengthening our robust and forward-looking partnership,” Goyal said on X.
 
Meanwhile, in the UK, the Speaker of the House of Lords --Lord Forsyth of Drumlean accepted an urgent Lords question (Private Notice Question) from Lord Sharpe of Epsom on the UK-India Free Trade Agreement. Lord Leong is the UK government spokesperson for the Department for Business and Trade.
 
The question was on what assessment has been made by the UK government on the proposed steel import restrictions that may jeopardise the implementation of the UK-India FTA; and what steps they are taking to protect British exporters, consumers, investment, and the benefits secured under that agreement.

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Responding to the question, Lord Leong said the government has “absolutely no intention of undermining the benefits of the trade deal for any specific sector”. The meeting of the UK Business and Trade Secretary with Goyal is also to ensure this FTA is implemented as soon as possible, he further said.
 
Meanwhile, responding to another question on how tariffs squeeze real wages and make goods more expensive, he underlined that no one wants tariff. “Tariff is almost the last resort when we have no alternative to protect our domestic industry,” Lord Leong said. He further elaborated that most of the steel imports to the UK do not meet the 60% quota and the 50% tariff would kick in only once the quota is reached.

The key sticking point is British government’s steel safeguards and carbon border adjustment mechanism. Effective July 1, 2026, the UK has decided to cut tariff-free steel imports and limit the overall quota to 60%. As a result, imports above these levels will attract a 50% tariff. This will apply to imports of steel products that can also be made in the UK. Previously, in December 2023, the UK government also decided to implement the CBAM from 2027 and is likely to impact Indian exports like iron and steel, aluminium, fertiliser and cement.

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India on its part has indicated that India may re-balance some duty concessions on certain products like Scotch Whiskey under the agreement with the UK if these issues do not get addressed.
 
India and the UK signed the Comprehensive Economic and Trade Agreement (CETA) in July 2025 following negotiations that took place from 2022 to 2025. It aims to double bilateral trade to $120 billion by 2030.
 
The UK government in a statement ahead of Kyle’s visit had said the meeting with Goyal seeks to advance trading relationship already worth £48 billion. “With the blockade of the Strait of Hormuz causing global economic shocks, the UK-India FTA can unlock a timely boost for both economies,” it had said.