India-UK FTA breaks ground with anti-graft clause

India and the UK have added a first-of-its-kind chapter on anti-corruption and anti-bribery measures to their free trade agreement (FTA), according to a policy paper released by the UK government.

- Dhirendra Kumar

NEW DELHI:

India has no such measures in its FTAs signed with Australia, the UAE, and the European Free Trade Association (EFTA), a four-nation bloc comprising Iceland, Liechtenstein, Norway, and Switzerland.

The inclusion in India-UK FTA is a crucial step towards levelling the playing field for exporters and investors who face inflated costs and operational uncertainty in markets affected by such malpractices.

Although details of the trade pact with the UK are not yet public, India's decision to cut import tariffs on automobiles from 100% to 10% and on Scotch whisky from 150% to 75% reflects a strong commitment by both sides to boosting trade.

The UK has eliminated tariffs on 99% of its exports to India, covering nearly the entire trade value, as the two nations aim to double bilateral trade to $100 billion by 2030. Negotiations for the free trade agreement began in January 2022.