INDIA-UK FTA FAIR TRADE

India and the UK seem to be close to concluding negotiations on the free trade agreement, with expectations that it could be completed before the end of the year

- SURABHI

INDIA AND the UK appear to be close to concluding the free trade agreement (FTA) that has been in the works since January 2021. Indications are that the talks could be completed by this October or November. Of the 26 chapters proposed in the FTA, the two countries are believed to have agreed on 19. Besides, negotiations are also underway on a separate bilateral investment treaty.

The two countries seem to have fast-tracked talks on the pact. Just last month, Union Commerce and Industry Minister Piyush Goyal and Commerce Secretary Sunil Barthwal visited London for the 11th round of bilateral talks, and the next round is currently underway. These talks could also receive a boost at the G20 trade and investment ministerial meeting scheduled to be held in Jaipur in late-August.

The increased momentum is a reflection of how crucial the pact is for both countries. When signed, this would be the most comprehensive deal inked by India with any developed country, coming on the heels of an interim treaty signed with Australia last year. The trade pact could also boost India’s negotiations in at least two other deals: one with the European Free Trade Association—the four-nation bloc of Iceland, Liechtenstein, Norway and Switzerland—and an interim trade pact with Canada. For a postBrexit UK, meanwhile, these talks represent a chance to access newer markets. It has signed 71 trade deals since leaving the European Union in 2020.

But it hasn’t been all smooth sailing. For India, protecting its domestic industry remains a priority, especially given the focus on Make in India, but at the same time it hopes to become a bigger exporter to the UK.