India-U.K. Free Trade Agreement To Be Completed By Year-End
The two countries have closed 19 of 26 chapters as part of the agreement.
Discussions regarding the proposed Free Trade Agreement between India and the United Kingdom are expected to conclude soon, with the trade deal likely to be completed before the year ends, according to a senior official.
The two countries have reached a broad consensus on the negotiations pertaining to goods such as automobiles and whisky, the official told BQ Prime on condition of anonymity.
The two countries have closed 19 of 26 chapters, the official quoted above said.
The U.K. and India concluded the 11th round of talks for the trade deal on July 18, shortly after an Indian delegation with Union Minister for Commerce and Industry Piyush Goyal visited the U.K. on July 10 and 11.
Certain aspects of the deal, such as Rules of Origin, intellectual property rights, and an investment treaty, remain to be discussed, according to the official.
Rules of Origin are a set of guidelines that indicate if certain products are eligible for import duty exemption or reduced duties under the FTA rules agreed upon by two countries. In the context of the India-U.K. FTA, the official said that the principal aspects have been agreed upon, while the modalities are being worked on.
Investment is being negotiated as a separate agreement—a Bilateral Investment Treaty. The negotiations will be led by the Department of Economic Affairs of the Ministry of Finance and are also expected to conclude at the same time as the India-U.K. FTA.
The FTA negotiations were launched on Jan. 13, 2022, and cover 26 policy areas.
The next round of talks is likely to take place in August, and the deal will aim for GDP, trade, and employment growth in both countries, the official said.
The bilateral trade between the countries increased to $20.36 billion in FY23 from $17.5 billion in FY22.