Virendra Pandit
New Delhi: India and the United Kingdom, which reviewed the much-awaited Free Trade Agreement (FTA) between them, are likely to ink it in the next few months.
The two countries, whose negotiations on the proposed FTA have reached the final stage, reviewed the progress when Union Commerce and Industry Minister Piyush Goyal met with British Secretary of State for Business and Trade Kemi Badenoch in Osaka, Japan, on the sidelines of the G-7 Meeting of Trade Ministers.
Negotiations between senior officials of India and the UK are going on to bridge differences on issues such as rules of origin and the services sector, with an aim to conclude the talks soon for the proposed FTA, the media reported on Saturday.
“Discussed the progress of India-UK free trade agreement negotiations with UK Secretary of State for Business and Trade Kemi Badenoch,” Goyal said on social media platform X.
India and Britain launched the talks for an FTA in January 2022, with an aim to conclude them by Diwali last year (October 24, 2022), but the deadline was missed due to political developments in the UK, after which Indian-origin Rishi Sunak became the Prime Minister there.
Now, the two countries are likely to sign the FTA in December 2023 during a proposed India visit by PM Sunak but a final decision is still awaited.
The bilateral FTA has 26 chapters, which include goods, services, investments, and intellectual property rights. An investment treaty is also being negotiated as a separate agreement between India and the UK.
These investment treaties help promote and protect investments in each other’s countries. The main point of contention in this pact is the mechanism for settlement of disputes.
The Indian industry is demanding greater access for its skilled professionals from sectors like IT, and healthcare in the UK market, besides market access for several goods at zero customs duty.
On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, automobiles, lamb meat, chocolates, and certain confectionary items. Britain is also seeking more opportunities for the UK’s services in Indian markets in segments like telecommunications, legal, and financial services (banking and insurance).
The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23, from USD 17.5 billion in 2021-22.
Goyal also held bilateral meetings in Osaka with US Trade Representative (USTR) Katherine Tai, World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala, Japanese Economy, Trade and Industry Minister Nishimura Yasutoshi, Japanese trading and investment major Matsui and Co’s Director and Chair of Board of Directors Tatsuo Yasunga, and Australian Trade and Tourism Minister Don Farrell.
“Held a productive discussion on scaling up the India-US trade and investment ties with USTR Katherine Tai,” he said.
With the WTO chief, the Indian minister deliberated upon greater cooperation to ensure free and fair trade among member countries.