There are pending issues in both goods and services sectors.
New Delhi:
Commerce and Industry Minister Piyush Goyal met UK Secretary of State for Business and Trade Jonathan Reynolds in Italy and discussed plans to take forward the negotiations on the proposed free trade agreement, an official statement said on Wednesday.
The bilateral meeting took place on the sidelines of the G7 Trade Ministers’ meeting at Reggio Calabria, Italy.
The India-UK talks for the proposed free trade agreement (FTA) began in January 2022. The 14th round of talks stalled as the two nations stepped into 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 the discussions on FTA between India and the UK,” the commerce ministry said.
In an FTA, two or more trading partners either significantly reduce or eliminate customs duties on the maximum number of goods traded between them. Besides, they also ease norms to promote and facilitate trade in services and investments.
There are pending issues in both goods and services sectors.
The Indian industry is demanding greater access for its skilled professionals from sectors like IT and healthcare in the UK market, besides market access for several goods at nil customs duty.
On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionary items.
Britain is also looking for more opportunities for UK services in Indian markets in segments like 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.
The bilateral trade between India and the UK increased to USD 21.34 billion in 2023-24 from USD 20.36 billion in 2022-23.
The Labour Party’s election manifesto for the recent polls also committed to clinching the deal.
Mr Goyal also holds meetings with other counterparts at the G7 Trade Ministers’ meeting.
“Discussions with Valdis Dombrovskis, Executive Vice President of the European Commission focused on promoting India-EU trade and economic collaborations, including ongoing FTA negotiations,” it said.
During his meeting with New Zealand’s Trade Minister Todd McClay, both ministers explored opportunities to enhance bilateral trade and investment ties for mutual growth.
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