India Secures 85% Steel Exemption in UK FTA, Faces Global Tariff Battle
GS2Polity · Governance · IR· India's bilateral relations· Prelims + Mains·
Why in news
India secured an 85% steel exemption in the India-UK Free Trade Agreement (FTA) scheduled to commence on July 15, 2024, amidst rising global protectionism.
Background
The India-UK FTA provides 99% tariff-free access for Indian exports. India secured an 85% exemption for baseline steel trade with the UK, while facing potential hurdles from the UK's Carbon Border Adjustment Mechanism (CBAM).
Facts for Prelims
- Intl. orgCBAM: A carbon pricing mechanism by the UK/EU to put a fair price on carbon emissions embedded in imports.
- FactIndia secured an 85% exemption for baseline steel trade under the India-UK FTA.
- FactThe India-UK FTA aims to provide 99% tariff-free access for Indian exports.
- PlaceUK: United Kingdom
For Mains
Q. Examine how the shift towards 'transactional' Free Trade Agreements and carbon-based trade barriers like CBAM impact India's export competitiveness in the global steel market.
Dimensions to cover in your answer
- Trade-environment nexus: Balancing export growth with compliance costs of the UK's Carbon Border Adjustment Mechanism (CBAM)
- Protectionist friction: Navigating EU steel import limits while seeking preferential market access in the UK
- Strategic trade-offs: Balancing immediate tariff exemptions with long-term sustainability requirements in bilateral trade deals
Keywords: Trade Liberalization · Carbon Border Adjustment Mechanism · Protectionism · Export Competitiveness · Transactional Diplomacy
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.