India-UK FTA: Scotch whiskey, EV, services issues may figure in 14th round of talks in Jan

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.

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.

India and the UK launched the talks for an FTA in January 2022 with a view to boost economic ties between the two nations. There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.

From the Bangkok agreement (or APTA) to IPEF, Indias FTA journey has evolved significantly, reflecting its commitment to foster international trade and economic integration within its region and with global partners. These phases demonstrate Indias adaptability and willingness to explore new avenues for economic growth and cooperation on the international stage.

CEPA is a kind of free trade agreement, under which two trading partners significantly reduce or eliminate customs duties on the maximum number of goods traded between them. Besides, they also ease norms to promote trade in services and investments.

Issues which need resolution include rules of origin; intellectual property rights (IPRs); social security agreement; duty concessions on electric vehicles, scotch whiskey, lamb meat, chocolates and certain confectionary items; liberalisation of norms in services sectors like banking and insurance.

Majority of the issues in the proposed FTA between India and the UK are either finalised or at an advanced stage of talks, according to a government official. The 14th round of negotiations is currently underway. Talks are also progressing on the proposed BIT. Meanwhile, the seventh round of talks for the proposed trade deal between India and the EU and the sixth round of negotiations for a proposed trade agreement between India and Peru are scheduled.

Indias main exports to the UK are ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, while key imports include precious and semi-precious stones, ores and metal scraps, and engineering goods. Discussions are also going on between the countries on the bilateral investment treaty. Investment is being negotiated as a separate agreement and earlier, the plan was to conclude the two simultaneously.

India and the UK are addressing differences over intellectual property rights and rules of origin in their ongoing negotiations for a free trade agreement. The countries have closed 14 of the agreement's 26 chapters, with issues surrounding environment, labour, and digital trade occurring in five remaining chapters.