There are outstanding issues in the goods and services sectors.
New Delhi:
Trade and Industry Minister Piyush Goyal met UK Secretary of State for Business and Commerce Jonathan Reynolds in Italy and discussed plans to take forward negotiations on the proposed free trade agreement, a statement said official on Wednesday.
The bilateral meeting took place on the sidelines of the G7 Trade Ministers meeting in Reggio Calabria, Italy.
India-UK talks for the proposed free trade agreement (FTA) began in January 2022. The 14th round of talks stalled as the two nations entered their general election cycles.
“Mr Goyal congratulated Mr Jonathan Reynolds on his appointment and discussed deepening bilateral economic relations. The conversation included plans to take forward discussions on the India-UK FTA,” the commerce ministry said.
In an ACL, two or more trading partners significantly reduce or eliminate customs duties on the maximum number of goods traded between them. In addition, they also make rules more flexible to promote and facilitate trade in services and investments.
There are outstanding issues in 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 duty-free products.
On the other hand, the United Kingdom is seeking a significant reduction in import duties on products such as Scotch whiskey, electric vehicles, lamb, chocolates and certain confectionery items.
Britain is also looking for more opportunities for UK 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, which include goods, services, investments and intellectual property rights.
Bilateral trade between India and the United Kingdom increased to $21.34 billion in 2023-24 from $20.36 billion in 2022-23.
The Labor Party’s election manifesto for the recent election also committed to sealing the deal.
Mr. Goyal also meets with other counterparts at the G7 Commerce Ministers’ meeting.
“Discussions with Valdis Dombrovskis, Executive Vice-President of the European Commission, focused on promoting economic and trade collaborations between India and the EU, including the ongoing FTA negotiations,” he said.
During his meeting with New Zealand Trade Minister Todd McClay, both ministers explored opportunities to enhance bilateral trade and investment ties for mutual growth.
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