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Informist, Monday, Mar. 10, 2025

 

--Source: UK to review some "previously closed chapters" in FTA with India

--Source: UK has not yet sought renegotiation of any chapter under India FTA

 

By Krity Ambey

 

NEW DELHI – The negotiations for a free trade agreement between India and the UK, which have been in an advanced stage for quite some time, have come across a new hitch and may now take longer to conclude. The UK's new Labour government has decided to review some of the chapters of the agreement that had been previously closed under the previous Conservative government, an official said.

 

The UK officials have not yet sought renegotiation of any of the chapters, the government official told Informist. However, chances are that a review could potentially lead to renegotiation. London might revisit certain subjects in later rounds of talks following the review.

 

India and the UK last week held the latest round of negotiations after a pause of almost one year. Both the sides had held 14 rounds of talks till last year, in which they had nearly closed chapter-wise textual negotiations, and discussions on goods and services were at an advanced stage, according to the commerce ministry. 

 

A day before India and the UK resumed discussions for a trade pact last week, Commerce and Industry Minister Piyush Goyal had said that the two countries would build upon the groundwork that had already been completed. The discussions for the agreement had come to a halt last year as the two nations stepped into their respective election cycles. 

 

While India's top government officials, including Prime Minister Narendra Modi, have at several instances said that the negotiations for a trade deal with the UK would conclude very soon, Goyal did not give a timeline last week. "It's always good to conclude fast, so we will have speed but not haste," Goyal had said.

 

India and the UK began negotiations for a free trade agreement in January 2022 when Conservative Party's Boris Johnson was the prime minister. A deadline of October 2022 was initially set to coincide with Diwali, but political developments in the UK delayed the conclusion of discussions.

 

Indian companies are hopeful that the trade agreement would grant them 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 electric vehicles, chocolates, and lamb meat.

 

The UK had also asked for lower duty on whiskey and notably India last month slashed customs duty on bourbon whiskey to 50% and on other alcohols to 100% from 150%.

 

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 billion, with India having exported goods worth $12.92 billion and imported worth $8.41 billion.  End

 

US$1 = INR 87.23

 

Edited by Akul Nishant Akhoury

 

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