India-UK Trade Negotiations Nearing Conclusion, Says Commerce Secretary

14 Oct, 2023

India-UK Trade Negotiations Nearing Conclusion, Says Commerce Secretary

Commerce Secretary Sunil Barthwal disclosed on Friday that negotiations between India and the United Kingdom for a free trade agreement have entered an advanced stage. Both sides are actively addressing the remaining differences to move closer to a comprehensive agreement. Barthwal mentioned, "We are negotiating tough issues which remain," without providing specific details on these challenges.

He also noted that he had been in the UK the previous week for discussions with his British counterparts. This week, a delegation of UK negotiators is in New Delhi for the 13th round of talks that commenced on the 18th of the previous month.

The proposed Free Trade Agreement (FTA) between India and the UK, which was initiated in January 2022, encompasses 26 chapters covering various policy areas. Barthwal pointed out, "The majority of chapters are closed or are in advanced stages of negotiations."

There has been speculation that the agreement might be finalized by the end of the current month. While less contentious issues have been resolved, negotiations are ongoing concerning matters of significant interest to India, such as increased access for its skilled professionals from sectors like IT and healthcare in the UK market, along with expanded market access for numerous goods with zero customs duties.

On the other hand, the UK seeks a substantial reduction in import duties for products like Scotch whiskey, automobiles, lamb meat, chocolates, and certain confectionery items.

The UK is also interested in creating more opportunities for British services in the Indian markets, particularly in sectors such as telecommunications, legal services, and financial services, including banking and insurance.

A successful conclusion of these negotiations would result in India's first free trade agreement with a developed country, which could serve as a model for other similar pacts that India is pursuing, including those with the European Union.

Another UK team is concurrently in India to negotiate the Bilateral Investment Treaty with officials from the Ministry of Finance, which is expected to be signed alongside the FTA.

The United Kingdom remains a significant trade and investment partner for India. Bilateral trade between the two countries increased to $20.36 billion in 2022-23, up from $17.5 billion in the previous fiscal year.

Regarding FTA negotiations with the European Union, Secretary Barthwal announced that the sixth round of discussions would take place in Brussels starting on Monday. During the fifth round of negotiations in June, discussions covered 20 policy areas.