We’ll Have Speed, Not Haste: Goyal as India & UK Resume FTA Talks
In a significant development, India and the United Kingdom have decided to restart negotiations for a free-trade agreement (FTA). This decision was announced by Union Minister of Commerce Piyush Goyal after a meeting with UK Business and Trade Secretary Jonathan Reynolds. The talks, which were put on hold earlier, are expected to boost bilateral trade and economic ties between the two nations.
Goyal expressed his optimism about the outcome of the talks, saying, “It’s never too late to conclude a good agreement…We’ll have speed but not haste.” When asked if an FTA can be expected by this year, the minister remained non-committal, indicating that the negotiations may take some time to conclude.
The decision to resume FTA talks comes at a time when India is looking to strengthen its economic ties with the UK, which is a significant trading partner. The country has been seeking to diversify its trade relations and reduce its dependence on traditional partners like the United States and the European Union.
The FTA, if successful, could lead to significant benefits for both countries. For India, it could provide access to the UK’s large and diverse market, which could help the country to boost its exports and attract foreign investment. The UK, on the other hand, could benefit from India’s rapidly growing economy and large consumer market.
India and the UK had launched FTA talks in 2019, but the negotiations were put on hold in 2020 due to various reasons, including the COVID-19 pandemic and the UK’s decision to leave the European Union. Since then, the two countries have been engaged in sporadic talks, but a formal resumption of the negotiations was awaited.
Goyal’s statement has generated optimism among trade experts and industry leaders, who believe that the FTA could be a game-changer for bilateral trade. “The FTA is a significant opportunity for both countries to increase trade and investment,” said Rafeeq Ahmed, President of the Federation of Indian Export Organisations (FIEO). “We expect the talks to focus on reducing tariffs, increasing market access, and streamlining trade procedures.”
The FTA could also help to address the trade imbalance between the two countries. India has a significant trade deficit with the UK, which stood at around $6.5 billion in 2020-21. The FTA could help to reduce this deficit by increasing Indian exports to the UK and promoting investment in key sectors like pharmaceuticals, automotive, and textiles.
The resumption of FTA talks is a significant development in India’s efforts to strengthen its economic ties with the UK. The country has been seeking to increase its trade with the UK, which is a key partner in the Asia-Pacific region. The UK, in turn, is looking to increase its trade with India, which is one of the fastest-growing major economies in the world.
In recent years, India and the UK have been engaged in various initiatives to boost bilateral trade and economic ties. These include the signing of a Memorandum of Understanding (MoU) on cooperation in the fields of trade, investment, and innovation, and the launch of the India-UK Trade Working Group.
The FTA talks are expected to focus on a range of issues, including market access, tariffs, and trade procedures. The two countries are also likely to discuss cooperation in key sectors like healthcare, education, and technology.
In conclusion, the resumption of FTA talks between India and the UK is a significant development that could have far-reaching implications for bilateral trade and economic ties. While the negotiations may take some time to conclude, the outcome could be a game-changer for both countries. As Goyal said, “We’ll have speed, but not haste.” Only time will tell if the two countries can conclude a good agreement that benefits both sides.
