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India and the UK are scheduled to debate the UK’s metal safeguard measures and the Carbon Border Adjustment Mechanism (CBAM) on Tuesday (2 June 2026), as these points have grow to be bottlenecks within the implementation of the bilateral free commerce settlement signed on 24 July 2025, authorities officers mentioned.
If these points are usually not resolved, India might readjust some tariffs on sure merchandise, reminiscent of Scotch whisky, below its settlement with Britain, he mentioned.
The problem of metal and CBAM will function prominently in a June 2 assembly between UK Secretary of State for Enterprise and Commerce Peter Kyle and Business and Commerce Minister Piyush Goyal.
These points have grow to be a form of deadlock within the implementation of the Complete Financial and Commerce Settlement (CETA).
The UK will limit duty-free metal imports from 1 July 2026, decreasing total quotas by 60% in comparison with metal safeguard measures. Imports above these ranges are topic to a 50% responsibility.
The measure applies to imports of metal merchandise that may also be manufactured within the UK. Britain had beforehand imposed safeguard measures that additionally imposed import quotas. The brand new measures cut back that allocation.
In December 2023, the UK authorities additionally determined to introduce the Carbon Border Adjustment Mechanism (CBAM) from 2027. India’s exports to the UK value $775 million could possibly be affected by the UK’s determination to introduce a carbon tax on merchandise reminiscent of metal, aluminium, fertilizers and cement from 2027, in line with financial suppose tank GTRI.
The UK will grow to be the second financial system after the European Union (EU) to introduce CBAM. The group calls the transfer an imported carbon pricing mechanism and can initially deal with sectors reminiscent of metal, aluminum, fertilizers, hydrogen, ceramics, glass and cement.
This tax may vary from 14% to 24% of the import worth within the occasion of an entire phase-out of free allowances below the Emissions Buying and selling System (ETS).
Throughout a go to to London in 2025, Commerce and Business Minister Piyush Goyal expressed concern concerning the tax and mentioned India may contemplate retaliation if Britain went forward with the plan.
India’s exports of metal and metal merchandise to the UK have been value $893.4 million in 2025-26, accounting for a big share of the whole merchandise exports to the UK of $13.4 billion.
Sources additionally mentioned India might contemplate rebalancing the British metal difficulty with the British Scotch concessions that India provided at CETA.
Beneath the settlement, India introduced that it will cut back tariffs on British whiskey and gin from 150% to 75%, and additional to 40% within the tenth yr of the settlement.
In India, Scotch whiskey manufacturers reminiscent of Johnnie Walker, Chivas Regal, and The Glenlivet are the preferred. Johnnie Walker is among the best-selling Scotches right here.
