India, UK Sign Trade Deal With Scope for Renegotiation

The free trade agreement between India and the UK, concluded on May 6, incorporates a mechanism that would allow either party to renegotiate specific clauses if the other offers better terms to a third country through separate bilateral agreements, according to people familiar with the matter.

- Rajeev Jayaswal

NEW DELHI:

The provision, now undergoing legal review, reflects the UK's concern about missing future opportunities as India rapidly expands its trade relationships with major economies, including ongoing negotiations with the US and the European Union.

"The mechanism is mainly proposed by the British side as almost all major developed economies are holding FTA talks with India, which is rapidly growing to become the third largest by 2028. The UK does not want to miss out on any major opportunities even in the future," said one of these people, who asked not to be named.

Although the agreement was concluded on May 6, it will require almost a year of clause-by-clause legal scrutiny and necessary approvals from competent authorities in both countries before it can be implemented, the official added.