Negotiations for a comprehensive Free Trade Agreement (FTA) between India and the United Kingdom are currently the focal point of bilateral ties, according to British High Commissioner to India Alex Ellis. Speaking ahead of External Affairs Minister S. Jaishankar’s visit to London, Ellis highlighted several challenging areas that may require high-level intervention. While British Prime Minister Rishi Sunak is keen to visit India, the priority lies in advancing the FTA discussions.
Ellis noted that significant progress had been made in the negotiations, and the two sides are now addressing the more complex issues that remain unresolved. While no specific timeframe has been given for the completion of the FTA, the ongoing negotiations have been described as rigorous, with frequent meetings aimed at surmounting obstacles.
The delay in finalizing the FTA talks had led to the postponement of Sunak’s proposed bilateral visit to India. The negotiations, initiated after Brexit in 2022, are currently in their 14th round, with five out of 26 chapters still requiring resolution.
In a recent phone call, Prime Minister Narendra Modi and Sunak engaged in a discussion regarding the advancements accomplished in the talks concerning the FTA. Meanwhile, External Affairs Minister Jaishankar embarked on a four-day visit to the United Kingdom, described as “long overdue.” He is expected to engage in high-level meetings in London to discuss strategic ties.
Indian officials have emphasized that the India-UK FTA is currently India’s top priority. This is followed by agreements with Australia for the Comprehensive Economic Cooperation Agreement (CECA), as well as talks with the European Union, the European Free Trade Association (EFTA) countries, and the Gulf Cooperation Council (GCC).
Both Sunak and Modi are hopeful that the FTA can be finalized by early 2024, aligning with the upcoming elections in India and the United Kingdom. However, no official deadline has been set.
The challenges in the FTA negotiations include issues related to Rules of Origin, tariffs on goods such as Scotch whiskey, automobiles (including electric vehicles) from the UK, as well as leather and textiles from India. Additionally, India has yet to commit to providing legal and financial access to the Indian market for UK firms.
Ellis emphasized the need to identify and resolve key issues at a senior level, focusing on crucial matters while setting aside secondary concerns. However, he clarified that mobility, including visa regulations for Indians, is not part of the agreement.
In relation to the UK’s decision to categorize India as a “safe state” and limit asylum applications from Indians crossing the English Channel unlawfully, Ellis asserted that this was an independent assessment aimed at tackling illegal migration. He stressed the significance of curbing such migration in order to safeguard legal channels of migration. Additionally, Ellis underscored that Indians possess the highest number of work visas granted for the UK, including students, visitors, and skilled professionals.
In summary, negotiations for the India-UK Free Trade Agreement are confronted with various challenges, yet both parties commit to reaching a compromise. Despite British Prime Minister Rishi Sunak expressing interest in a visit to India, the main focus remains on resolving intricate issues within the FTA discussions. These talks revolve around topics such as Rules of Origin, tariffs, and market access. As External Affairs Minister Jaishankar arrives in the UK, high-level meetings are expected to drive the advancement of strategic ties between the two nations.
