The implementation of the India-UK free trade agreement has hit a roadblock as both countries continue discussions on Britain's steel safeguard measures and the proposed Carbon Border Adjustment Mechanism (CBAM). These issues have emerged as key sticking points and are expected to be a major focus during high-level bilateral talks aimed at operationalising the trade pact.
India has expressed concerns that the UK's steel import restrictions and upcoming carbon tax framework could negatively affect exports and dilute the benefits of the trade agreement. Officials from both sides are exploring solutions, but sources indicate that the pact's rollout may remain delayed until these concerns are adequately addressed.
Reference: CNBC-TV18 – Resolution of Steel, CBAM Issues Sticking Point in Implementation of India-UK Trade Pact