Resumption likely by January
Despite the intensity of discussions some of the issues are still to be sorted out. From an Indian point of view, the UK’s demand for greater market access in automobiles, whiskey and some other trade related issues like rules of origin and intellectual property rights are key areas that are taking time for resolution.
Negotiations for a free trade agreement (FTA) between India and the UK are likely to resume by January end after remaining suspended for about eight months due to parliamentary elections in both countries.
According a report in the Financial Express, unnamed official sources say that “Firm date of the next round of talks has still not been communicated by the UK so far”.
The talks began in January 2022 and since then 14 rounds have been held between officials of both sides. The negotiations have been long drawn. Last few rounds extended for months, sometimes with breaks.
Despite the intensity of discussions some of the issues are still to be sorted out. From an Indian point of view, the UK’s demand for greater market access in automobiles, whiskey and some other trade related issues like rules of origin and intellectual property rights are key areas that are taking time for resolution.
Sources also say that the statements by US President-elect Donald Trump on additional tariffs on imports from Canada, Mexico and China could result in gains for India.
In the services sector the UK is seeking national treatment for its companies. India’s demand for easier access to the UK market to its professionals through a liberal visa regime is one of the areas where common ground is eluding the negotiators.
Earlier speaking on the issue of mobility of professionals at CII’s Global Economic Policy Forum Commerce Secretary Sunil Barthwal said developed countries are confused about the concept of migration and mobility.
“If Indians or Indian companies are setting up bases in other countries, then mobility of professionals needs to be ensured, ” he said adding “we are not asking for migration, we are asking for mobility”.
In FTAs (free trade agreements), this is the point of negotiations with most of the developed world. Smooth movement of these professionals are key issues in India’s proposed FTAs with countries including the UK and European Union.
He also emphasised on the need to build a narrative that mobility is essential for growth of the services sector as a whole.
Apart from FTA, India and UK are also negotiating an invest treaty.
Bilateral merchandise trade between the UK and India was $ 21.3 billion in 2023-24, with India’s exports at $ 12.9 billion and imports at $ 8.4 billion. In goods trade the UK is India’s 16th biggest trading partner. Services exports to the UK are higher than goods exports. Services exports to the UK in 2023 stood at $ 17.7 billion while imports were at $ 12.9 billion.
Total FDI from UK to India stands at $ 225.5 billion while Indian investment in the UK is $ 12.9 billion.
