UK won't undermine India FTA benefits; steel imports below quota: Leong

House of Lords member Sonny Leong says the UK remains committed to the India FTA and that steel imports are currently well below proposed quota thresholds

The UK does not intend to undermine the benefits under its free trade agreement (FTA) with India, House of Lords member Sonny Leong said on Tuesday. He also said that current steel imports into the UK are not close to the proposed quota limit.

 

"We have no intention of undermining the benefits of the trade deal for any specific sector. This is why my friend, the Secretary of State for Business and Trade, is in India having conversations with Minister Goyal to get the trade deal implemented as soon as possible," Leong said in the British Parliament during a discussion on the UK's proposed steel import restrictions and whether they may jeopardise the implementation of the India-UK trade deal.

 

 

"At this point, as far as steel is concerned, most of the imports do not even meet the quota. So until it hits the quota, the 50 per cent (tariff) does not come in," Leong said.

 

Meanwhile, the UK Secretary of State for Business and Trade met India's Commerce Minister Piyush Goyal on Tuesday in New Delhi to discuss bringing the FTA into force as quickly as possible.

 

The FTA was expected to be implemented last month, but was delayed following the UK government's announcement to lower tariff-free steel import quotas by 60 per cent to safeguard the domestic industry from dumping. Starting in July, steel shipments above the quota limit will attract a 50 per cent duty in the UK.

 

The discussion in the British Parliament followed reports of India's plan to review concessions on Scotch whisky under its trade deal with the UK.

 

"We have signed a legal treaty with India, which underpins the trade deal. So this liberalisation of whisky is a clear part of that. And we will adhere to this and we will support the Scotch Whisky Association to ensure India meets the obligation," Leong said in the House of Lords.

 

Under the Comprehensive Economic and Trade Agreement, signed between the two sides in July, India has committed to cut tariffs on Scotch whisky from 150 per cent to 75 per cent immediately, and to 40 per cent over the next 10 years.

 

The UK has offered duty concessions on 99 per cent of tariff lines, including zero tariffs on steel, under its trade deal with India.