New Delhi: India and the United Kingdom are nearing the culmination of their free trade agreement (FTA) negotiations, with senior officials suggesting that the deal could be signed by the end of January. Both countries have made significant progress in resolving differences in the trade of goods and are expected to reach an understanding on thorny issues such as legal services and the movement of professionals.
The 14th round of negotiations is scheduled to take place in January when a UK team will visit New Delhi. Officials from the Indian commerce ministry may also travel to the UK to finalize the details of the agreement. However, time is of the essence, as failure to sign in January or early February may delay the signing until after the upcoming Lok Sabha elections, warned a senior government official.
Previous rounds of negotiations, held between September 15 and December 15, saw both virtual and in-person talks in New Delhi and London. Similar discussions are expected for the 14th round. Sources close to the matter indicate that broad progress has been made in granting market access to goods such as automobiles, whisky, textiles, and leather. Nevertheless, issues about migration, movement of professionals, and legal services have presented challenges within the services sector.
The United Kingdom has been pushing for access to India’s legal services market, an area where both nations are major exporters. Currently, foreign lawyers and law firms are prohibited from appearing in any Indian court, tribunal, or board by the Bar Council of India (BCI). However, the BCI did issue new guidelines earlier this year that permit limited entry for foreign lawyers, allowing them to participate in international commercial arbitration on a reciprocal basis.
In terms of tariff cuts, the sources state that while immediate tariff reductions will be implemented for some products under the agreement, a gradual timeline for reducing tariffs in other sectors is likely. This phased approach will provide negotiators with flexibility to bring the deal to a close.
The signing of the FTA between India and the United Kingdom will bolster trade ties between the two nations and open up new avenues for economic cooperation. Both sides are committed to resolving the remaining issues and harnessing the potential for mutual growth and development.
