New Delhi [India], July 15 (ANI): The United Kingdom’s safeguard measures on steel imports are intended to protect its domestic industry from unfairly priced overseas shipments and are not aimed at India, Harjinder Kang, the UK’s Trade Commissioner for South Asia and former chief negotiator for the India-UK Free Trade Agreement (FTA), said while addressing concerns among Indian steel exporters.
Speaking to ANI, Kang said the UK’s steel safeguards were introduced to protect domestic manufacturers from overseas dumping, a challenge faced by many countries, and should not be viewed as measures targeting Indian steel producers.
Addressing concerns over import restrictions and the structure of steel quotas under the agreement, Kang emphasized that the UK’s existing trade defense measures are not directed at India.
“The steel safeguards that the UK has put in place are essentially designed to protect the industry from overseas dumping. It has nothing to do with India. It is not an anti-India measure in any shape or form,” Kang said.
He also sought to minimize concerns about the impact on bilateral trade, noting that only a small share of Indian steel exports is affected.
“By and large, the majority of steel exported from India to the UK is unaffected. It is only a small proportion—around 15% to 20% of the types of steel India exports—that falls within the affected category. This is something we discussed with the Indian government to find a way to address. We reached an amicable solution, and everything is good,” Kang said.
His remarks come amid industry concerns about the treatment of steel exports under the India-UK Free Trade Agreement, which took effect Wednesday. While the agreement significantly lowers tariffs on thousands of products, certain categories of steel exports remain subject to quota-based safeguard measures.
The India-UK Comprehensive Economic and Trade Agreement (CETA), signed in London, officially entered into force Wednesday, providing zero-duty access for 90.2% of Indian exports to the UK while reducing India’s import duties on key British products.
Kang said the safeguard regime was introduced to address concerns about low-cost steel entering the UK market from various countries, making domestic production commercially unviable. He stressed that the policy is designed to preserve the competitiveness of Britain’s steel industry rather than discriminate against any particular trading partner.
He added that the issue was discussed extensively during the FTA negotiations and that both governments reached what he described as an amicable solution.
“We’ve discussed it with the Indian government to find some way of addressing that. We came to an amicable solution, and it’s all good,” he said.
Kang also highlighted the agreement’s provisions on temporary professional mobility, saying they would significantly reduce costs for workers assigned abroad.
Explaining the Double Contribution Convention, Kang said, “If you are a UK worker paying your National Insurance contributions in the UK, you do not then need to contribute to the host country’s social security system if you are there on a temporary basis for a certain number of years.”
“The same principle applies to Indian nationals. If they are going to the UK temporarily and continuing to contribute to their social security system in India, such as the Provident Fund, they would not have to pay National Insurance contributions in the UK. This applies for a specific period. It was originally 36 months, but we agreed to extend it to 60 months, or five years. After that, it no longer applies,” he added.
According to Kang, extending the exemption period to five years will provide significant relief for major Indian information technology and engineering companies.
“If a company like Tata or Infosys is sending engineers, managers, or other professionals to the UK for a couple of years on a temporary assignment, this is where they would benefit. It would encourage greater two-way movement because the cost burden would be lower. It directly benefits individuals by eliminating the need to pay into two social security systems,” he said.
Kang also clarified that the UK’s Carbon Border Adjustment Mechanism (CBAM) was never part of the FTA negotiations.
“We made it clear from day one that CBAM was never part of the FTA. It was not discussed as part of the agreement. We will address it if and when it comes,” he said.
The India-UK FTA is expected to eliminate or reduce tariffs on the vast majority of goods traded between the two countries, boosting bilateral trade and strengthening economic cooperation.
Kang said the limited safeguard measures affecting certain steel products should not overshadow the broader benefits expected from the landmark trade agreement. (ANI)
About The Author
