India-UK FTA talks to resume from February 24
The ongoing negotiations between India and the UK on a proposed free trade agreement (FTA) are set to resume from February 24, according to recent reports. The talks, which have been stalled for several months, aim to address various issues related to tariffs, services, and other trade-related matters. The UK’s trade minister, Anne-Marie Trevelyan, is expected to visit New Delhi later this month to spearhead the negotiations.
The India-UK FTA negotiations have been ongoing since 2020, with both sides seeking to increase trade and investment between the two countries. The proposed agreement is expected to remove tariffs and other trade barriers, making it easier for businesses to operate in each other’s markets. The talks have, however, been slow to progress due to several contentious issues.
One of the key areas of disagreement is the issue of tariffs on electric vehicles (EVs). The UK is seeking to reduce or eliminate tariffs on EVs imported from India, while India is resisting such demands. The Indian government has imposed a 10% customs duty on EVs to promote domestic manufacturing and encourage the use of electric vehicles. The UK, on the other hand, is pushing for a more liberalized trade regime to help its own automotive industry.
Another contentious issue is the taxation of alcoholic beverages. The UK is seeking to reduce or eliminate tariffs on wine and other beverages imported from India, while India is resisting such demands. The Indian government has imposed a range of taxes on alcohol, including a 150% customs duty on wine and a 200% duty on other beverages. The UK is seeking to reduce these tariffs to make it easier for its own wine and beer producers to compete in the Indian market.
Services is another area where the two sides have been unable to reach an agreement. The UK is seeking greater access to India’s services sector, particularly in areas such as financial services, healthcare, and education. India, on the other hand, is seeking to protect its domestic industries and maintain control over its services sector.
Despite the challenges, both sides are keen to reach an agreement and are expected to make significant progress during the resumed talks. The Indian government is eager to conclude the FTA to boost trade and investment with the UK, while the UK is seeking to diversify its trade relationships and reduce its reliance on the EU.
The resumed talks are expected to be led by Anne-Marie Trevelyan, the UK’s trade minister, who is expected to visit New Delhi later this month. Trevelyan has already met with Indian officials on several occasions to discuss the FTA and is expected to continue these talks during her visit.
The India-UK FTA is expected to have significant economic benefits for both countries. The UK is one of India’s largest trading partners, with bilateral trade worth over $24 billion in 2020. The FTA is expected to boost this trade by increasing the flow of goods and services between the two countries.
For the UK, the FTA is seen as an important step in diversifying its trade relationships and reducing its reliance on the EU. The UK’s departure from the EU has created uncertainty for many businesses, and the FTA with India is seen as a way to reduce this uncertainty and increase trade with a major emerging market.
In conclusion, the resumed talks on the India-UK FTA are a significant development for both countries. The agreement has the potential to boost trade and investment between the two countries and is expected to have significant economic benefits for both sides. With the talks set to resume from February 24, businesses and investors are eagerly awaiting the outcome of the negotiations.
News Source: https://investmentguruindia.com/newsdetail/india-uk-fta-talks-to-resume-from-february-24830607
