India, UK to soon hold next round of free trade agreement talks

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The chief negotiators of India and the UK are gearing up for the next round of talks on the proposed free trade agreement. Discussions are expected to address issues such as automobiles, medical devices, and the movement of professionals. The United Kingdom negotiating team is likely to visit India for the 14th round of negotiations to expedite the talks.

While virtual sessions are ongoing, both sides are planning for a comprehensive round of talks where all chapters will be discussed simultaneously. Key issues that require resolution include rules of origin, intellectual property rights (IPRs), social security agreements, duty concessions on electric vehicles, scotch whiskey, lamb meat, chocolates, and certain confectionary items, as well as liberalization of norms in the services sector, including banking and insurance.

Progress is also being made on the proposed bilateral investment treaty (BIT), negotiated separately between India and the UK. BITs play a crucial role in promoting and protecting investments in each other's countries. One of the main points of contention is the mechanism for dispute settlement, with India proposing to exhaust local judicial remedies before resorting to international arbitration.

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India and the UK initiated talks for the free trade agreement in January 2022, with a goal to conclude discussions by Diwali in October 2022. However, the deadline was missed due to political developments in the UK. The agreement comprises 26 chapters covering goods, services, investments, and intellectual property rights.

Indian industries are advocating for greater access for skilled professionals, particularly in IT and healthcare, in the UK market, along with market access for various goods at nil customs duties. The UK, on the other hand, is seeking significant reductions in import duties on goods such as scotch whiskey, automobiles, lamb meat, chocolates, and certain confectionary items.

Bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22. The 'rules of origin' provision aims to prevent the dumping of goods by prescribing minimal processing in the FTA country. This ensures that the final manufactured product can be considered originating goods in that country. (With inputs from PTI)