India and UK to start FTA talks in new year

INTERNATIONAL DESK: India and the UK are set to embark on negotiations for a Free Trade Agreement (FTA) imminently.

A spokesperson for the British government’s Department for International Trade (DIT) told the Indian English daily Business Standard: “We look forward to launching negotiations early next year”.

“India is projected to become the world’s third largest economy by 2050, and a trade deal will open huge opportunities for UK businesses to trade with India’s $2.25 trillion economy.”

The negotiations will aim to expeditiously arrive at a services rather than a goods-driven FTA between India and UK.

A report by the U.K.-India Business Council “Road to a U.K.-India Free Trade Agreement: Enhancing the Partnership and Achieving Self-reliance”, which had been consulted by the British Government ahead of the talks, had flagged India’s Intellectual Property (IP) enforcement regime, gaps in pharma sector regulations, drug price controls, norms related to data localisation and governance.

The Council also flagged the high tariffs like 150% on U.K.-made Scotch Whiskey and the ban on its sales in CSD canteens as causes for concern.

Officials have underlined that despite Brexit, the U.K.’s exit from the European Union, and even in the absence of an FTA, the bilateral trade stands at a “strong” £18 billion or $24 billion, supporting nearly half-a-million jobs.