U.K.-India Free Trade Agreement Officially Takes Effect, but PET and Recycled PET Import Tariffs Remain Unchanged

Under this trade agreement, 99% of goods exported from India to the UK will enjoy zero tariffs or reduced tariffs, while 90% of goods exported from the UK to India will receive tariff preferences. The UK government predicts that, in the long term, bilateral trade will increase by £25.5 billion.

However, practitioners in the PET industry are unlikely to feel the impact of changes in the trade environment in the short term. The UK Trade Remedies Authority announced on November 20, 2025, that it would extend anti-subsidy duties on specific imported PET products from India for another five years. The authority determined that if the relevant tariff measures were lifted, subsidized low-priced products from India would once again flood the UK market and harm the domestic industry.

The UK Trade Remedies Authority stated that PET producers in India continue to benefit from various government subsidies and support, and that the UK market remains highly attractive for Indian exporters; therefore, it has decided to extend the tax policy.