Negotiations for the Free Trade Agreement (FTA) between India and the United Kingdom are set to resume in January, with several crucial issues on the agenda. A government official revealed that discussions would focus on duty concessions about scotch whisky and electric vehicles (EVs) as well as matters concerning the services sector, particularly the mobility of skilled workers.
The official noted that significant progress had been made in resolving most of the issues related to rules of origin and intellectual property rights (IPRs). However, the negotiations, which have entered their final stages, still face challenges regarding the demand for customs duty concessions on scotch whisky and EVs by the UK, along with the need for liberalization of service sector norms in fields such as banking, insurance, and legal services.
Both countries have concluded 13 rounds of talks thus far, with the next round scheduled for January 2024. Indian industry leaders are pushing for enhanced market access for skilled professionals in sectors like IT and healthcare within the UK, along with nil customs duties for goods like textiles and leather. Conversely, the UK is seeking reduced import duties for scotch whisky, automobiles (including EVs), lamb meat, chocolates, and confectionary items. Additionally, the UK aims to expand opportunities for its services in the Indian market, particularly in telecommunications and financial services.
Furthermore, discussions surrounding the proposed bilateral investment treaty (BIT) have several pending issues to address. However, both countries remain committed to resolving these matters and strengthening bilateral trade ties.
The FTA between India and the UK holds the potential to unlock significant opportunities for businesses and promote economic growth in both nations. The upcoming negotiations in January will play a crucial role in shaping the terms of the agreement and addressing the remaining challenges.
