The UK Government has formally concluded negotiations on a new Free Trade Agreement (FTA) with India – a significant milestone in Britain’s post-Brexit trade policy, and one that is expected to create opportunities across a range of industries.
While full details are yet to be published, the deal is being promoted as one of the most comprehensive signed by the UK since leaving the EU, with major implications for tariffs, market access, and regulatory cooperation.
What does this mean for aluminium?
India is one of the world’s largest aluminium producers and exporters, and an FTA could impact the UK market in several ways:
- Tariff changes: The deal is expected to remove or reduce tariffs on a wide range of goods. For aluminium and downstream products, this could increase import competition, particularly in areas like extrusions, rolled products, and value-added components.
- Market access: UK aluminium producers could gain new access to Indian supply chains, though this will depend heavily on technical standards, rules of origin, and certification requirements.
- Carbon considerations: The UK’s upcoming Carbon Border Adjustment Mechanism (CBAM) – due in 2027 – remains a point of contention. India has raised concerns that the measure could unfairly penalise its exports. How CBAM interacts with this FTA will be a key area to watch.
ALFED position and next steps
The Aluminium Federation (ALFED) is actively monitoring the rollout of this agreement and is engaging with members to assess the likely impact. This includes potential risks to UK manufacturing competitiveness, as well as strategic opportunities for exports and partnerships.
Nadine Bloxsome, ALFED CEO, commented: “This new trade deal is a landmark moment in the UK’s global trade strategy. But for our aluminium sector, the real impact will depend on the fine print – particularly around tariffs, carbon pricing, and how UK producers are supported in an increasingly competitive global market. We’re speaking with members to gather feedback and ensure Government understands what’s needed to protect and grow our domestic capability.”
ALFED invites all members to share their views and experiences. If you have specific concerns or see opportunities related to the UK-India FTA, please contact nbloxsome@alfed.org.uk.
We will continue to provide updates and commentary as the details of the agreement are released.
For more information, please click here to read the full press release regarding the UK-India Free Trade Agreement.
Useful Links:
The sectoral highlights:
https://www.gov.uk/government/news/uk-india-free-trade-deal-a-deal-for-growth
