UK-Indian Trade Deal: Government Refuses to Answer Whether it Has Conceded on Cheap Indian Steel Imports

The UK Government has refused to answer whether it has made major concessions on Indian steel imports to the UK in return for getting the UK-India Trade Deal over the line.

The Welsh Liberal Democrats have warned that any action by the UK Labour Government to reduce the tariffs faced by steel being imported to the UK from India would be a betrayal of Welsh communities, following the decision by Tata Steel to shut down blast furnaces in Wales while simultaneously opening new blast furnaces in India.

When Minister of State for Trade Policy Douglas Alexander was questioned by Liberal Democrat Spokesperson for Wales David Chadwick on whether or not tariffs on Indian steel will be lowered or given exemptions from the UK’s Carbon Border Adjustment Mechanism under the Agreement, the Minister refused to answer.

Ahead of the deal being signed, one of the most serious issues of contention between the UK and Indian governments was considered to be the UK’s Carbon Border Adjustment Mechanism and whether Indian sectors such as steel and cement would be subject to exemptions that would make imports from India cheaper.

The tariff rate for steel currently imported from India into the UK is 25%. This tariff is part of the UK's steel safeguards, a quota system where a 25% tariff is applied to steel imports exceeding a certain limit.

The Liberal Democrats have called on the UK Government to immediately clarify whether they conceded on India’s demands for exemptions for steel exports to the UK in order to get a deal over the line; warning that any concessions made to India could place the remainder of the UK's steel industry at risk.

Commenting, Liberal Democrat Spokesperson for Wales David Chadwick MP said:

“It was not immediately clear from the Minister’s answers to my questions or their announcements today whether or not the UK Government had conceded to Indian demands for concessions relating to steel imports into the UK.

“It would be a gross betrayal of steel workers in South Wales if the Government has rewarded Tata Steel for shutting down blast furnaces and shedding jobs in Wales while simultaneously opening new ones in India.

“The Government must immediately clarify whether or not these concessions were made and if they were, why?”

ENDS