India has requested a steel quota of $900 million per year from the UK to resolve the impasse in the implementation of the Free trade agreement (FTA) signed between the two countries last year, Indian government sources said on Wednesday, June 17.
This move by the Indian government follows the UK's proposal for new protective measures for steel, which entail a drastic reduction in duty-free import quotas under the proposed FTA and the imposition of a 50% tariff on shipments exceeding these limits, potentially affecting Indian steel exports to the UK.
The sources said that the Indian government has asked the UK to ensure that the quota for India is at least equivalent to the three-year average of exports of Indian steel and steel products to the UK, which currently stands at about $900 million.The quota announced by the UK, which is due to come into force on July 1, is much lower than this level, and the Indian steel industry will eventually suffer, despite the free trade agreement. The industry will eventually be hit hard in at least six categories where India has significant export interest, with Indian exports to the UK well above their proposed quota, the sources said.
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