The recently announced US-UK trade deal, though still at an interim General Terms (GT) stage, offers strategic insights for India. The UK secured key concessions on autos and steel, with an annual export quota of 100,000 vehicles at a 10% duty and some zero-duty allocations for steel and aluminium. In return, the US gained significant market access for ethanol, beef, and aerospace components.
UK successfully retained its regulatory autonomy in key areas such as digital services tax, online safety, and food standards—refusing to relax norms for hormone-treated meat or chlorinated chicken. These stances underscore how India must also safeguard its digital privacy laws, food security, and taxation principles during trade negotiations, especially with the US.
India’s negotiators are scheduled to meet US counterparts soon, and the GT highlights the importance of reciprocity in sector-specific deals. India must push for concessions in textiles, footwear, and pharmaceuticals, and ensure Rules of Origin do not disadvantage industries like petroleum refining and fisheries. With “economic security” now a dominant theme, India’s strength in supply chains and joint manufacturing must be presented strategically in future trade talks.