Negotiations on Business Mobility Chapter of India-UK Free Trade Discussions

25 Aug, 2023

Negotiations on Business Mobility Chapter of India-UK Free Trade Discussions

In the context of their proposed free trade agreement (FTA), discussions between India and Britain are centered around the concept of business mobility, according to a statement made by Kemi Badenoch, the UK's Minister for Business and Trade. Addressing this matter on a Thursday, Badenoch emphasized that matters related to visa liberalization are not encompassed within the scope of trade pacts.

Focusing on the services sector, Badenoch highlighted that the UK stands as the largest market for Indian IT services in Europe. Despite a slowdown in goods exports due to diminished demand in the Western markets, India's services exports continue to grow.

Regarding the progress of FTA negotiations, Badenoch expressed her optimism and shared her engagement with her counterpart, Commerce Minister Piyush Goyal, in ensuring the development of a mutually advantageous agreement for both nations. Although unable to provide a precise deadline due to the dynamic nature of negotiations, she conveyed her dedication to the process.

During her attendance at a G20 trade and investment ministers meeting in Jaipur, Badenoch elaborated on the collaborative efforts of India and the UK to address concerns regarding a bilateral investment treaty and business mobility. She clarified that matters concerning visas and visa liberalization are distinct, falling under the jurisdiction of immigration matters managed by the UK's Home Office through a points-based visa system.

Elaborating on the alignment of business mobility with the trade framework, Badenoch underscored the active deliberations surrounding the bilateral investment treaty and business mobility. These discussions aim to reach an agreement that accommodates the interests of both countries.

Addressing queries about India's request for increased UK visas for Indian workers, Badenoch responded by indicating the ongoing negotiations' progress. As the fifth round of negotiations advances, the focus is on resolving discrepancies related to issues like investment treaties, rules of origin, and intellectual property rights. The UK's commitment to achieving the agreement was affirmed by Badenoch, who stressed the seriousness of the endeavor.

While details of the negotiations remain confidential to the chief negotiators, Badenoch acknowledged that the most challenging aspects of negotiations often arise towards the conclusion. She noted, however, that several chapters of the pact have already been finalized, signaling positive strides in the negotiation process.