Discussions between India and the UK are actively progressing to resolve critical friction points obstructing the implementation of their Comprehensive Economic and Trade Agreement (CETA). Chief sticking points center around Britain’s upcoming steel safeguard measures, which will slash tariff-free import quotas by 60 percent from July 1, 2026, and impose a 50 percent duty on excess volumes, alongside the 2027 rollout of the Carbon Border Adjustment Mechanism (CBAM). Financial experts warn that the impending UK carbon tax could jeopardize 775 million dollars worth of Indian exports across heavy industrial sectors like iron, steel, aluminum, fertilizer, and cement. While Commerce and Industry Minister Piyush Goyal recently engaged in high-level talks with UK Secretary Peter Kyle to iron out one of the three core disputes, New Delhi maintains that it will not activate the deal or accept the steep 50 percent tariff penalty on 88 vital steel tariff lines.