India and the UK aim to begin negotiations for a proposed bilateral free trade agreement by November 1, which aims to increase trade and investment between the two countries. Commerce and Industry Minister Piyush Goyal on Tuesday said that the two countries are moving towards an early crop trade agreement with a comprehensive FTA (Free Trade Agreement) as the next step.
Britain expressed hope that there is a “strong prospect” of an early trade deal between the two countries. Matters related to the FTA came to the fore during a virtual meeting between Goyal and his British counterpart Foreign Minister Elizabeth Truss on Tuesday.
India’s Ministry of Commerce and Industry said in a statement, “The proposed FTA between India and the UK is expected to open up exceptional business opportunities and create jobs. The two sides renewed their commitment to promote trade in this way.” So that everyone benefits.” Speaking on the occasion, Goyal said that both sides look forward to an early conclusion of the talks for quick and speedy economic benefits for businesses.
He also pointed out that substantial work has already been done for the proposed agreement and extensive stakeholder consultations involving industry, trade associations, export promotion councils, buyers/seller associations, regulatory bodies, ministries and public research bodies were conducted. Huh. In addition, bilateral working groups have been set up for different tracks to understand each other’s ambitions, interests and sensitivities to facilitate quick progress during the talks. The meetings of these groups are still going on and they are likely to be completed by September.
Goyal said these discussions would help the two sides understand each other’s policy arrangements and that joint discussions would begin from October 1 by both sides to finalize the terms of reference for the talks to begin in November. Will put us in a better position when we do. “An interim trade agreement, as the first phase of an FTA, will allow both of us to make the most of the early gains of the partnership,” he said, adding that India and the UK are strengthening trade ties by moving towards an early harvest deal. Huh. by a comprehensive FTA.
In a free trade agreement, two or more trading partners reduce or eliminate customs duties on the maximum number of trades between them, in addition to liberalizing norms to promote trade in services and investments. In an interim trade agreement, customs duties are removed on a limited number of goods. Goyal stressed the need to strike a balance between commitments and concessions in goods and services.
In addition, the statement said certain services of mutual interest may be included in the interim agreement through a request proposal approach, which may include priority areas that can be delivered immediately. “If necessary, we can also explore the signing of certain Mutual Recognition Agreements (MRAs) in select services such as nursing and architecture services,” it added.
MRA paves the way for recognition of professional bodies of one country by another country. Regulatory bodies of various professional services such as engineering, nursing, accountancy and architecture are encouraged to enter into these agreements. Britain’s Secretary of State for International Trade Liz Truss, in a statement posted on her Twitter handle, announced the launch of trade working groups to lay the foundation for the upcoming UK-India trade agreement.
“Today Piyush Goyal and I launched business working groups to lay the foundation for our upcoming UK-India trade deal, which will: boost access to over a billion consumers, boost our science and tech industries, and help both countries Will support jobs in he said. Britain’s Department of International Trade (DIT) said talks between the two ministers focused on the scope and ambition of the UK-India FTA, following the close of Britain’s formal consultation process ahead of talks on 31 August.
The UK government said these regular ministerial dialogues help both sides better understand each other’s positions on potential chapter areas in any trade deal, including tariffs, standards, IP (intellectual property) and data regulation. Truss reaffirmed his ambition to negotiate a trade deal that delivers outcomes for British people and businesses, including digital and data, technology and food and drink. The DIT said the two ministers agreed that it was important to continue engaging with the business community during the forthcoming talks.
According to officials, the findings of the DIT’s public consultation will be published before formal trade talks begin, outlining a strategic rationale for the FTA, including the UK’s negotiating objectives and an economic analysis of the potential deal. Earlier, the UK Trade Ministry had said that preparations for an FTA with India are underway. A deal would represent a major boost for UK exporters, reducing tariffs, easing regulation and boosting bilateral trade, which totaled 23 billion GBP in 2019, it noted.
Given India’s status as one of the world’s largest and fastest growing economies and home to over a billion consumers, growth in UK-India trade has been hailed by the UK as a huge opportunity. “We are looking at a comprehensive trade agreement that covers everything from financial services to legal services to digital and data, as well as goods and agriculture. We think there is a strong possibility for us to have a preliminary agreement , where we lower tariffs. Start seeing more goods flowing on both sides and between our two countries,” Truss said.
Bilateral trade between the two countries stood at US$ 13.11 billion in 2020-21 as against US$ 15.45 billion in 2019-20. The trade balance is in favor of India. India’s main exports to the UK are textiles, gems and jewellery, engineering goods, petroleum products, transport equipment, spices, machinery and equipment, pharmaceuticals and marine products.
The main imports from Britain include precious and semi-precious stones, ores, metal scrap, engineering goods, chemicals and machinery. In the services sector, the UK is Europe’s largest market for Indian IT services.
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