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). The announcement was made by Union Minister of Commerce Piyush Goyal after meeting UK Business and Trade Secretary Jonathan Reynolds. The resumption of talks is expected to boost bilateral trade between the two nations and create new opportunities for businesses.
When asked if an FTA can be expected by this year, Goyal was cautious but optimistic. “It’s never too late to conclude a good agreement… We’ll have speed but not haste,” he said. His words reflect the focus on quality over speed, ensuring that the agreement is mutually beneficial and meets the needs of both countries.
The decision to restart FTA talks comes at a time when the global economy is facing significant challenges. The COVID-19 pandemic has led to a decline in trade volumes, and many countries are looking to strengthen their bilateral relationships to boost economic growth. The resumption of talks between India and the UK is a positive step towards achieving this goal.
A potential FTA between India and the UK has been under discussion for several years. In 2019, the two nations launched formal talks on an FTA, but the process was put on hold due to various reasons, including the COVID-19 pandemic and the UK’s decision to leave the European Union.
The UK’s departure from the EU, also known as Brexit, has created new opportunities for India to strengthen its trade ties with the country. The UK is now free to negotiate its own trade agreements, and India is one of the countries that has been identified as a priority for trade cooperation.
The potential benefits of an FTA between India and the UK are significant. The two nations already have a strong trade relationship, with bilateral trade valued at over $23 billion in 2020. An FTA could lead to further expansion of trade, particularly in sectors such as services, manufacturing, and agriculture.
India’s services sector is one of the most significant contributors to the country’s GDP, and an FTA with the UK could lead to increased opportunities for Indian companies in areas such as IT, finance, and healthcare. The UK, on the other hand, is a significant player in the global manufacturing sector, and an FTA could lead to increased trade in areas such as automotive, aerospace, and pharmaceuticals.
Agriculture is another sector that could benefit from an FTA between India and the UK. India is the world’s second-largest producer of milk, and the UK is a significant player in the global agricultural market. An FTA could lead to increased trade in agricultural products, including dairy, poultry, and horticulture.
The resumption of FTA talks between India and the UK is a significant development, and it is expected to have a positive impact on bilateral trade and economic cooperation. The focus on quality over speed, as emphasized by Goyal, is crucial in ensuring that the agreement is mutually beneficial and meets the needs of both countries.
In conclusion, the decision to restart FTA talks between India and the UK is a positive step towards strengthening bilateral trade and economic cooperation. The potential benefits of an FTA are significant, and it is expected to lead to increased trade and investment between the two nations. As Goyal said, “It’s never too late to conclude a good agreement… We’ll have speed but not haste.” With this approach, India and the UK can work together to create a stronger and more resilient trade relationship.
