Next India-UK free trade agreement talks to be held soon
What's the story
The lead negotiators from India and the UK are gearing up for their next round of discussions on the proposed free trade agreement (FTA).
Both parties are set to tackle differences in areas such as automobiles, medical devices, and professional mobility, PTI reported citing an official.
The UK delegation is expected to visit India for the 14th round of negotiations so that the talks can be concluded at the earliest.
Details
Key issues to be addressed in FTA talks
In the forthcoming FTA talks, negotiators will focus on several crucial matters.
These matters include rules of origin, intellectual property rights (IPRs), social security agreements, and duty concessions on items like electric vehicles, scotch whiskey, lamb meat, chocolates, and select confectionery products.
Additionally, the discussions will aim to ease regulations in the services sector, including banking and insurance. These virtual sessions will be followed by a full-scale round of negotiations.
Insights
India's and UK's industry demands
"Virtual sessions are progressing. But we are planning for a full-fledged round of talks," the official told PTI.
Indian industries want their skilled IT and healthcare professionals to have more access to the UK. They are also pushing for goods to enter the UK market with zero customs duties.
Meanwhile, the UK aims for reduced import duties on certain goods and seeks broader opportunities for its services in India, especially in telecommunications, legal, and financial sectors like banking and insurance.
What Next?
Bilateral investment treaty negotiations
Separately, India and the UK are making headway on a proposed bilateral investment treaty (BIT), which will play a vital role in fostering and safeguarding investments in each nation.
A primary point of disagreement is the dispute settlement mechanism. India has suggested exhausting local judicial remedies before turning to international arbitration for resolving disputes.
Insights
Bilateral trade growth and rules of origin
The FTA negotiations commenced in January 2022.
Bilateral trade between India and the UK rose to $20.36 billion (Rs. 1.7 lakh crore) in 2022-23 from $17.5 billion (Rs. 1.6 lakh crore) in 2021-22.
The FTA's 'rules of origin' provision aims to curb goods dumping by mandating minimal processing in the FTA country, ensuring that the final manufactured product can be considered originating goods in that nation.
This provision assists in preventing the dumping of goods in each other's markets.