THE much-awaited free trade agreement (FTA) between India and the United Kingdom may be finalised very soon, recent reports suggest.
Top officials from both the countries are currently engaged in 12th round of talks in New Delhi to thrash out the few issues that remain. Of the 26 chapters in the proposed agreement, 19 are said to have been successfully closed at the end of the last round of talks held in London.
Latest reports suggest that the current round will address lingering issues such as London’s intent that New Delhi reduce tariffs on British cars and Scotch whisky, while India wants relaxation in visa norms for its professionals.
Car, whisky duties
India may agree to scale down duty on British cars from 100 to 75 per cent and on Scotch whisky from 150 to 100 per cent, and the UK is likely to offer relaxation in visa rules for Indian professionals, said some media reports, quoting officials.
Britain is also willing to accept New Delhi’s standards on environment protections and labour – which is a key Indian demand – given the differences in economic development and sensitivities involved for its micro, small, and medium sized firms, reported news agency Bloomberg, citing unnamed officials. The official outcome of the latest round of talks would be known only towards end-August or early September.
Both governments are working toward finalising the trade agreement by the end of the year, aiming to double bilateral trade by 2030, as envisaged by Prime Ministers Narendra Modi and Rishi Sunak.
PMs stress speed
The trade talks, which started on January 13, 2022, continued amid political changes in the UK. Both premiers reportedly spoke over the phone earlier this year and agreed to expedite discussions on outstanding issues. On July 10-11, Indian Minister for Commerce and Industry Piyush Goyal visited the UK as part of the 11th round of the negotiations. During the trip, he held several meetings to spur trade relations. Among those who Goyal met were Huddleston and Secretary of State for Business and Trade Kemi Badenoch.
With talks moving at a healthy pace, the negotiations for the agreement could be concluded soon. The two nations are now ready to pave the way to a comprehensive and mutually beneficial arrangement that would drive economic growth and strengthen their ties.
