Due to the unprecedented economic and political crisis in the United Kingdom (UK), after the Diwali deadline, UK officials are likely to visit India in December to conclude free trade agreement (FTA) talks over the next four months. . The trade agreement aims to double the bilateral trade between the two countries by 2030.
An Indian government official told Reuters news agency that the two countries would soon finalize whether next month’s meeting would be at ministerial or secretary level.
“It will take 3-4 months of continuous negotiations to complete the deal, which will have a broader understanding on issues such as mobility and short-term work visas in the UK,” the official told Reuters news agency.
The official also pointed out that 14 of the 26 chapters have already been finalized and the UK delegation will cover the finer aspects of the trade deal and the FTA is expected to end by March 2023.
Both sides had earlier decided on Diwali as the deadline for the FTA, but as the political/economic crisis in the UK unfolded with the resignation of two prime ministers and record inflation, the FTA between India and the UK took the backseat.
Now, as the new UK prime minister Rishi Sunak settles in and India is also reviewing some aspects of the deal, FTA deliberations are expected to go on for a few more months.
“The UK has recently announced a cabinet, and it may want to consult with industry anew. Now that we have a new commerce secretary, industry wants the new secretary to revisit some of the terms of the deal. Consider, especially the auto and liquor industries, which have expressed concern over opening up the sectors,” said a commerce department official.
“Also, the Christmas holidays are around the corner for the UK. Most importantly, we will have the Union Budget in February, so it may take time. The signing of a deal will happen only after it is cleared by the bureaucracy.”
is an area of controversy Scotch WhiskyOn which both sides seem to be hesitant to move forward. While India is vowing to reduce the duty on Scotch whiskey by 150% in the first year to 100% and 50% in 10 years, the UK is seeking a reduction of 75% and then up to 30% within three years with the enforcement of the FTA. Used to be. years.
India and the UK started FTA talks in January this year and it aims to cover 90% of the trade tariffs between the two countries. The FTA aims to double bilateral trade to about $100 billion by 2030. Currently, trade between the two countries is dominated by services, accounting for about 70% of the total trade.
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