* India warns UK steel curbs could affect Scotch whisky
tariff concessions
* Kyle to visit India for talks amid trade deal tensions
(Adds details, UK, India officials’ comments in paragraph 2-11)
NEW DELHI/LONDON, June 1 (Reuters) – India could revisit
tariff concessions offered to Britain on products such as Scotch
whisky if London fails to address New Delhi’s concerns over its
steel safeguard measures, an Indian official said on Monday
ahead of fresh bilateral trade talks.
The India-UK free trade deal, signed in May last year and
expected to take effect this year, has run into hurdles
after Britain proposed stricter safeguards on steel imports to
protect its domestic industry.
“So now the ball is in their (UK) court,” an Indian trade
official told reporters on Monday. “If they do not leverage
their free trade agreement, we can always reconsider the
concessions we offered.”
Britain’s Trade Secretary Peter Kyle is due in India for
talks with Commerce Minister Piyush Goyal on Tuesday.
Under the trade pact, India agreed to cut tariffs on Scotch
whisky from 150% to 75% initially and further to 40% over 10
years.
The deal envisages tariff reductions by both sides on a
range of goods, from textiles to whisky and cars, while
expanding market access for businesses in the world’s fifth- and
sixth-largest economies.
The two countries expect the agreement to boost bilateral
trade by an additional 25.5 billion pounds ($34 billion) by
2040.
India has objected to Britain’s steel safeguard measures,
arguing they could restrict market access for Indian exports.
The dispute centres on tariff-free quotas and higher duties on
some steel shipments, creating fresh uncertainty for Indian
exporters even as both sides work to implement the trade pact,
officials said.
India, along with Brazil, Turkey, Japan, South Korea,
Switzerland and Australia, has raised concerns at the World
Trade Organization over Britain’s new restrictions on
tariff-free steel imports.
Britain has also proposed imposing carbon-related border
measures from January 1, 2027, covering imports of products such
as iron and steel, aluminium, cement and fertilisers as part of
its efforts to reduce carbon emissions.
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