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Informist, Thursday, Sep 26, 2024

 

By Krity Ambey and Sagar Sen

 

NEW DELHI – Discussions between India and the UK on their proposed Free Trade Agreement are unlikely to resume in what remains of 2024, a commerce ministry official said. The trade pact was originally slated to be signed by Diwali 2022.

 

"A lot of festivals are approaching. Soon they (UK officials) will go into holiday mode," the official told Informist. "After that we can expect any progress only in the next year."

 

While October has several Jewish holidays such as Rosh Hashana and Yom Kippur, November has Diwali, with the year ending with Christmas and New Year’s.

 

The comments by the source come just days after Commerce Secretary Sunil Barthwal had said the government hopes to begin the next round of talks with the UK in October. The discussions have been on hold for half a year after the two countries stepped into their respective election cycles. There have been 14 rounds of negotiations so far with the last one being in April in London.

 

India and the UK began negotiations over a Free Trade Agreement in January 2022 when Boris Johnson was Prime Minister. While a deadline of October 2022 was initially set to coincide with Diwali, political developments in the UK delayed the conclusion of discussions.

 

Indian ministers, including Prime Minister Narendra Modi, as well as top government officials on several occasions have said discussions with UK officials were on track, with the new Labour government eager to conclude the deal.

 

Despite the long break in talks and the change in the UK government to Labour from Conservatives, there is no intention to revisit the chapters that were closed before Keir Starmer became Prime Minister in July, the official said.

 

"Chapter wise textual negotiations are nearly closed and goods and services are at an advanced stage of negotiations," the Indian commerce ministry had previously said.

 

Under the agreement, Indian companies are hopeful of getting market access for several goods at nil customs duty in the UK. They are also seeking better access for Indian professionals in the UK’s healthcare and information technology sectors. London, on the other hand, has demanded a cut in import duties on scotch whiskey, electric vehicles, chocolates, and lamb meat.

 

The UK was India’s 16th largest trade partner in 2023-24 (Apr-Mar). Bilateral trade between the two countries last year amounted to $21.34 bln, with India having exported goods worth $12.92 bln and imported worth $8.41 bln.  End

 

 

US$1 = 83.70 rupees

 

Edited by Deepshikha Bhardwaj

 

 

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