The India-UK Comprehensive Economic and Trade Agreement (CETA) came into force on July 15 and is being framed largely as a win for textiles, agriculture, engineering, and pharmaceuticals. But within its sectoral commitments are several provisions with direct relevance to India's recycling, waste management, and circular economy ecosystem. 

Plastic: India, among the largest suppliers of plastics to the UK, secures duty-free market access under CETA for plastic products, a category where India has established manufacturing strength. Lower landed costs are expected to boost exports of films, sheets, pipes, packaging, tableware, and kitchenware, positioning Indian exporters to compete more effectively against major suppliers like Germany and China. For recyclers producing recycled resin and downstream converters using recyclate as feedstock, this opens a pathway to a market that has traditionally leaned on EU suppliers. 

Textile: With zero-duty access granted on 1,143 tariff lines for textiles and apparel, and India already holding a 6.1% share of the UK's textile import market, export volumes from ready-made garments, home textiles, and carpets are likely to rise. This scaling of textile manufacturing and exports has a direct bearing on textile waste generation upstream.  

Engineering goods: Zero-duty access across 1,659 tariff lines in engineering goods, eliminating tariffs of up to 18%, benefits manufacturers of industrial and construction equipment. These include material recovery and recycling machinery components. With UK imports of engineering goods valued at USD 193.52 billion against India's current USD 4.28 billion share, there is significant headroom for Indian equipment manufacturers serving both domestic and export MRF and recycling infrastructure needs. 

Steel: Quota issue resolved: CETA also addresses the UK's steel safeguard measures introduced in March 2026, which affected 188 tariff lines. India's country-specific quota nearly tripled from 12,405 to 33,456 tonnes, with an additional 9.45 lakh tonnes reserved under the UK's Authorised Use Scheme. For scrap-based and recycled steel producers, this quota expansion offers meaningful relief and improved market predictability. 

Trade facilitation: Perhaps most relevant to the sector's many small and medium enterprises, CETA's simplified customs procedures, paperless trade systems, and digital certification mechanisms — including the Single Window and Authorised Economic Operator frameworks — are designed to cut compliance costs. For MSMEs in scrap trading, recovered paper, and secondary raw materials that operate on thin margins, this reduction in transactional friction could matter as much as tariff cuts. 

More details on the the agreement can be accessed here: