We’ll Have Speed, Not Haste: Goyal as India & UK Resume FTA Talks
In a recent development that is likely to boost bilateral trade between India and the UK, Union Minister of Commerce Piyush Goyal announced that the two nations have decided to restart negotiations for a free-trade agreement (FTA). The announcement was made after Goyal met with UK Business and Trade Secretary Jonathan Reynolds, marking a significant step forward in the ongoing efforts to strengthen economic ties between the two countries.
When asked if an FTA can be expected by this year, Goyal remained optimistic but cautious, stating, “It’s never too late to conclude a good agreement…We’ll have speed but not haste.” His words seem to suggest that while the negotiations may not be rushed, they will be carried out with a sense of urgency and determination.
The resumption of FTA talks between India and the UK is a welcome development, given the existing trade relationship between the two nations. In 2020, India became the UK’s 9th largest trading partner, with bilateral trade standing at over £23 billion. The UK, in turn, is India’s 4th largest trading partner, with bilateral trade valued at over $13 billion.
The potential benefits of an FTA between India and the UK are numerous. For one, it could lead to a significant reduction in tariffs and other trade barriers, making it easier for businesses to export goods and services between the two countries. This, in turn, could lead to an increase in bilateral trade, creating new opportunities for companies and contributing to economic growth.
Moreover, an FTA could also help to boost investment between India and the UK, as businesses from both countries look to expand their presence in each other’s markets. The UK’s decision to leave the European Union (Brexit) has created uncertainty for many businesses, and an FTA with India could provide a welcome boost to trade and investment.
However, the negotiations are unlikely to be without their challenges. Previous attempts to conclude an FTA between India and the UK have been unsuccessful, with talks stalled over issues such as market access, tariffs, and intellectual property rights. Goyal’s comments suggest that the two sides will need to tread carefully to ensure that any agreement is mutually beneficial and meets the needs of both countries.
Despite the challenges, the resumption of FTA talks is a significant step forward, and both India and the UK are likely to be keen to make progress. For India, an FTA with the UK could provide a welcome boost to its economy, which has been impacted by the COVID-19 pandemic. The UK, meanwhile, is looking to diversify its trade relationships and reduce its reliance on the European Union.
In conclusion, the resumption of FTA talks between India and the UK is a welcome development, and it will be interesting to see how the negotiations progress. While there are likely to be challenges ahead, both sides seem committed to making progress and concluding a deal that benefits both countries. As Goyal said, “It’s never too late to conclude a good agreement…We’ll have speed but not haste.” With this approach, there is every reason to believe that India and the UK can conclude a successful FTA that will benefit both nations for years to come.
