Updated

Updated · Bloomberg · Jun 17

Modi, Starmer Signal UK-India Trade Deal Breakthrough at G7, Saying They “Got It Over the Line”

Updated

Updated · Bloomberg · Jun 17

Modi, Starmer Signal UK-India Trade Deal Breakthrough at G7, Saying They “Got It Over the Line”

Q: What 'creative solution' on steel imports satisfied both India and the UK's struggling domestic industry?

The most likely “creative solution” was an India-specific steel quota inside the UK’s new safeguard regime, paired with a limited authorized-use channel for tariff-free imports needed by British manufacturers. The reporting provided does not describe a fully published final text, so no official detailed formula is confirmed in the material. But the clearest workaround under discussion was to give Indian exporters a dedicated quota—rather than forcing them to compete only in a sharply reduced general pool—while preserving the UK’s tougher overall protections for its struggling steel sector. That would have helped both sides. India would retain predictable, guaranteed access for a set volume of steel exports despite the UK’s new restrictions. The UK, meanwhile, could keep its broader policy of cutting tariff-free volumes and imposing a 50% tariff above quota, which was designed to shield domestic producers from import pressure. The additional “authorized-use” mechanism appears to be the other part of the compromise. It allows some steel imports to enter tariff-free if they are used by downstream UK industries for further processing, helping manufacturers that rely on imported inputs without fully reopening the market. So, in practical terms, the solution appears to have been controlled access for Indian steel through country-specific quotas and processing-linked exemptions, rather than a rollback of the UK’s steel safeguards.

3 articles · Updated · Bloomberg · Jun 17

A hot-mic exchange at the G7 in France suggested Britain and India have broken a trade deadlock, with Narendra Modi telling Keir Starmer, “We did it.”
Starmer appeared to confirm an agreement had been reached, replying: “We did it... We got it over the line,” in remarks caught as the two met on the summit sidelines.
The comments raised expectations that the UK and India have resolved an impasse in their trade talks, though no formal announcement or deal details were included in the report.
If confirmed, the breakthrough would mark a significant step in UK-India trade negotiations and give both leaders a deliverable on the international stage.