There are pending issues in both the goods and services sectors.
New Delhi:
Trade and Industry Minister Piyush Goyal met British Business and Trade Minister Jonathan Reynolds in Italy and discussed plans to continue negotiations on the proposed FTA, an official statement said on Wednesday.
The bilateral meeting took place on the sidelines of the G7 Trade Ministers meeting in Reggio Calabria, Italy.
Talks between India and Britain on the proposed Free Trade Agreement (FTA) began in January 2022. The fourteenth round of talks stalled as the two countries entered their general election cycle.
“Mr. Goyal congratulated Mr. Jonathan Reynolds on his appointment and discussed deepening bilateral economic ties. The conversation included plans to continue discussions on the India-Britain Free Trade Agreement,” the Commerce Ministry said.
In a free trade agreement, two or more trading partners significantly reduce or eliminate customs duties on the maximum number of goods traded between them. Moreover, they also relax standards to promote and facilitate trade in services and investments.
There are pending issues in both the goods and services sectors.
Indian industry is demanding greater access for its skilled professionals from sectors such as IT and healthcare in the UK market, in addition to market access for several goods without customs duties.
On the other hand, Britain is seeking a significant reduction in import duties on goods such as Scotch whisky, electric vehicles, lamb, chocolate and certain confectionery.
Britain is also looking to expand opportunities for British services in Indian markets in segments such as telecommunications, legal and financial services (banking and insurance).
The two countries are also negotiating a bilateral investment treaty (BIT). There are 26 chapters in the agreement, including goods, services, investments and intellectual property rights.
Bilateral trade between India and the United Kingdom increased from USD 20.36 billion in 2022-2023 to USD 21.34 billion in 2023-2024.
The Labor Party’s election manifesto for the recent polls also promised to seal the deal.
Mr Goyal is also holding meetings with other colleagues at the G7 Trade Ministers meeting.
“The discussions with Valdis Dombrovskis, Executive Vice-President of the European Commission, were aimed at promoting trade and economic cooperation between India and the EU, including ongoing FTA negotiations,” the report said.
During his meeting with New Zealand Trade Minister Todd McClay, both ministers explored opportunities to strengthen bilateral trade and investment ties for mutual growth.
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