UK and India Sign FTA, Maintaining Tariffs on Some Meat and Dairy Products (UK)

Overview

On July 24, 2025, the UK government announced the conclusion of a Comprehensive Economic and Trade Agreement (CETA) with India as a free trade agreement (FTA). Both governments announced the agreement on May 6, and it will come into effect after approval procedures in both countries. This agreement is expected to increase bilateral trade by £25.5 billion (approximately ¥5.149 trillion) annually in the long term. Regarding tariff treatment, the UK will eliminate tariffs on 99% of items, while India will reduce or eliminate tariffs on 90% of items. However, both countries have designated livestock products as exempt from tariff reduction and elimination. Specifically, for meat and dairy products, the UK will maintain current tariffs on pork, chicken, and eggs, while immediately eliminating tariffs on other meat and dairy products. India will immediately eliminate tariffs on sheep and goat meat but maintain current tariffs on all other meat, dairy products, and bird eggs including chicken eggs. Regarding food safety standards and sanitary and phytosanitary (SPS) measures, the UK and India will maintain their respective standards, and imported goods must comply with the importing country's standards as before. The UK government has stated that this agreement will not lower UK standards. The UK's Agriculture and Horticulture Development Board (AHDB) evaluates that while this CETA will not have significant impact on both export and import sides, increased export opportunities are expected in the long term, particularly anticipating increased demand for lamb from India's middle class. In Europe, moves to diversify trade are becoming active with the US tariff strengthening in mind, with the EU also reaching political agreements on trade agreements with Mercosur and Indonesia respectively.