India and the UK have reviewed the progress of negotiations for a proposed free trade agreement (FTA) between the two countries.
Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Kemi Badenoch discussed the progress in Osaka, Japan, during the Group of Seven (G7) trade ministers meeting. The talks for a trade agreement between India and Britain were launched in January 2022, to conclude them by Diwali last year. However, due to political developments in the UK, the deadline was missed.
Negotiations between senior officials of both countries are underway to bridge differences on issues such as rules of origin and the services sector.
The main point of contention in this agreement is the mechanism for settling disputes. India’s industry is pushing for greater access for its skilled professionals from sectors like IT and healthcare in the UK market, as well as nil customs duty for several goods. On the other hand, the UK is seeking a significant reduction in import duties on goods like scotch whiskey, automobiles, lamb meat, chocolates, and confectionery items.
Both countries are also looking for more opportunities in each other’s markets. The UK is seeking increased access to its services in India, particularly in segments like telecommunications, legal services, and financial services. In terms of bilateral trade, India and the UK saw an increase from USD 17.5 billion in 2021-22 to USD 20.36 billion in 2022-23.
During their time in Osaka, Minister Goyal also had bilateral meetings with US Trade Representative Katherine Tai, World Trade Organization Director-General Ngozi Okonjo-Iweala, and Japanese Economy, Trade, and Industry Minister Nishimura Yasutoshi.
Overall, both India and the UK are committed to progressing the negotiations for a free trade agreement, to strengthen economic ties and create opportunities for businesses in both countries
