"A trade agreement is only as powerful as the opportunities it unlocks." Assess the India–UK CETA in the light of the shift from negotiation to implementation.

The India–UK Comprehensive Economic and Trade Agreement (CETA) was signed in July 2025 and came into force on 15 July 2026 [2]. Negotiations set out what the deal makes possible. How much it is worth now depends on how far exporters actually use it.

Opportunities unlocked

• Market access: The UK gives duty-free access on about 99% of tariff lines. India opens about 90% of its lines, covering roughly 91% of UK exports [1]. Labour-intensive sectors such as textiles, leather and gems gain the most.
• Early momentum: On the first day, over 50 consignments worth more than USD 140 million were flagged off. Certificates of origin were issued through the eCoO 2.0 self-certification platform [3]. This included Chennai's first shipments of jewellery and auto parts [4].
• Professional mobility: The Double Contribution Convention exempts Indian workers on temporary UK postings from paying social security in both countries for up to five years [2]. It covers an estimated 75,000+ professionals and 900+ firms [1].
• Institutions: The JETCO (Joint Economic and Trade Committee) was reset to oversee implementation [5]. UK regional delegations and Indian outreach to MSMEs [8] carry the deal beyond the capitals.

Implementation gaps

• Low use of FTA benefits: Historically, only about 25% of India's eligible exports claim FTA benefits, against 70–80% in developed economies [7]. Rules-of-origin paperwork weighs most on MSMEs.
• Carbon border tax: The UK CBAM (Carbon Border Adjustment Mechanism) applies from 1 January 2027 to iron and steel, aluminium, cement, fertilisers and hydrogen [6]. It may cancel out tariff gains in carbon-heavy exports.
• Symbolic start: Early shipments are small compared with total bilateral trade. Data on how much of the deal is used will be the real test.
• Awareness gap: Many small firms still do not know how the deal applies to their products [7].

Negotiation → Ratification → Rules of origin/eCoO → MSME uptake → Trade growth
                                                       ↑ the weak link

Fig: The shift from negotiation to implementation

CETA has opened up access on paper, but its real strength will depend on how many firms use it. JETCO should take up the CBAM issue. CETA facilitation cells and regular data on how much the deal is used [7] would help MSMEs. Indian states could also run their own trade missions to UK regions, which puts cooperative federalism into practice. Together these would turn the deal's promise into jobs and growth, in line with SDG 8.