India, UK working to iron out issues on IPRs, rules of origin under proposed FTA

The two countries are looking at promoting trade in services through this agreement, negotiations for which was launched on January 13, 2021. As many as ten rounds of talks have been completed till June this year and both sides are aiming to conclude the negotiations at the earliest.

Negotiations for the India-UK free trade agreement are in the final stage. A high-level Indian delegation is heading to London to resolve remaining issues on goods, services, and rules of origin. The negotiations cover 26 chapters, including market access, skilled professionals, and import duties. The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23.

The 'rules of origin' provision prescribes minimal processing that should happen in the FTA country so that the final manufactured product may be called originating goods in that country. Under this provision, a country that has inked an FTA with India cannot dump goods from some third country in the Indian market by just putting a label on it. It has to undertake a prescribed value addition in that product to export to India. Rules of origin norms help contain the dumping of goods.

India and the UK are close to finalizing a free trade agreement (FTA), with the 12th round of talks set to take place in August. The talks are expected to cover issues such as investment, reduced duties on autos and whiskey, and trade in services. Of the 26 chapters in the proposed FTA, 19 have been agreed, while a separate agreement on bilateral investment is also being negotiated.

India-UK free trade agreement talks completed 13 rounds of negotiations that took place from 18 September to 15 December

With the FTA negotiations gaining momentum, the visit aims to further propel the discussions and pave the way for a comprehensive and mutually beneficial agreement that would drive economic growth and strengthen ties between the two countries.

The major trading partners of India in that region in 2022-23 were South Africa (total trade USD 18.9 billion, exports USD 8.5 billion); Nigeria (USD 11.85 billion, exports USD 5.15 billion); Togo (USD 6.6 billion, exports USD 6 billion), and Tanzania (USD 6.5 billion, exports USD 3.93 billion).

India and the European Free Trade Association, comprising Norway, Switzerland, Iceland and Liechtenstein, will sign a free trade agreement on Sunday, which is likely to attract $100 billion in investments over a period of 15 years.

Indian goods worth $960 million will lose their concessional duty access due to the UKs new Developing Countries Trading Scheme (DCTS) that will supersede the previous preferential regime from Monday. That said, this exclusion may turn out to be temporary as both countries are in the process of finalising a Free Trade Agreement.