India-UK FTA: Trade deal offers tariff safeguards; domestic industry gets protection buffer

India has secured the right to impose temporary trade safeguards under its newly signed free trade agreement (FTA) with the United Kingdom, the commerce ministry confirmed on Saturday. The mechanism allows India to raise import tariffs or suspend duty concessions if a sudden spike in British imports causes or threatens serious harm to domestic industries.The India-UK trade deal was signed in London on Thursday in the presence of senior leaders from both nations, including Prime Minister Narendra Modi and his UK counterpart Keir Starmer.“In this agreement, there are bilateral safeguard measures,” the ministry said in an official statement, as per news agency PTI. “It allows India to temporarily increase tariffs or suspend tariff concessions on certain goods if there is a significant surge in imports from the UK that causes or threatens to cause serious injury to Indian domestic industries.”The safeguard provisions are initially valid for up to two years but may be extended for another two years if a formal investigation finds that continued protection is necessary for the affected domestic sector to recover and adjust. “Thus, the total maximum duration of a bilateral safeguard measure is four years,” the ministry said.According to the agreement, if India applies these safeguards only for two years, the UK cannot take retaliatory measures. However, if extended to four years, Britain will have the right to respond.The pact also includes a provision for provisional safeguards in urgent or emergency situations. “Provisional measures can be used in critical or emergency situations to prevent irreparable harm to domestic industry,” the ministry said, adding these can be enforced for up to 200 days based on preliminary findings, but must be followed by a comprehensive investigation.Commerce Minister Piyush Goyal has emphasised that India has safeguarded all sensitive sectors, including dairy, rice, and sugar, during the negotiations. “We have protected all the sensitive sectors of India… we have not opened for the UK (those areas)…. Zero compromise and extensive benefits make it a phenomenal free trade agreement (FTA),” Goyal said, as per PTI.The minister also highlighted that the agreement would give a significant boost to exports of labour-intensive sectors like footwear, textiles, and gems and jewellery.