India May Revisit Whisky Tariff Cuts Over UK Steel Plan

India could reconsider the tariff concessions it offered to Britain under the recently signed free trade agreement if London fails to address New Delhi’s concerns over proposed steel import 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 come into force this year, has hit a hurdle after Britain proposed reducing quotas and increasing tariffs on steel imports in a move aimed at protecting its domestic steel industry.

Trade deal faces fresh challenge over steel measures

“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.” The remarks come just ahead of a visit by Britain’s Trade Secretary Peter Kyle, who is scheduled to hold talks with Commerce Minister Piyush Goyal in India on Tuesday as both countries work towards implementing the landmark trade pact.

In a statement released before his visit, Kyle described the agreement as beneficial for both countries and said it would create significant economic opportunities. “I look forward to working with Piyush Goyal to make sure everybody can start to feel the benefits as soon as possible,” Kyle said in the statement, which did not mention discussions related to steel.

Scotch whisky concessions under spotlight

A UK official, meanwhile, said steel issues are not part of the discussions related to implementing the free trade agreement. Under the trade pact, India agreed to reduce tariffs on Scotch whisky from 150% to 75% initially, with a further phased reduction to 40% over the next 10 years.

The trade deal includes tariff cuts by both countries on a wide range of products, including textiles, whisky and automobiles. It also seeks to improve market access for businesses in India and Britain, the world’s fifth- and sixth-largest economies respectively. Both countries expect the agreement to generate an additional 25.5 billion pounds ($34 billion) in bilateral trade by 2040.

WTO concerns add to growing tensions

India is among several countries, including Brazil, Turkey, Japan, South Korea, Switzerland and Australia, that have raised concerns at the World Trade Organization regarding Britain’s proposed steel measures.

According to Indian officials, the new system of tariff-free quotas and higher duties on certain steel shipments could restrict market access for Indian exports and create fresh uncertainty for exporters at a time when both sides are preparing to roll out the free trade agreement.

(with inputs from Reuters)

Also Read: Reliance Jio IPO: Will June 19 AGM End Seven-Year Wait For Investors?

The post India May Revisit Whisky Tariff Cuts Over UK Steel Plan appeared first on NewsX.