The 14th and final round of negotiations for a free trade agreement between India and the UK commenced on January 10, 2024. The discussions aim to address remaining issues concerning various sectors such as business mobility, Scotch whiskey, automobiles, farm products, pharmaceuticals, and rules of origin. Additionally, there are talks about a separate agreement to enhance bilateral investments, according to sources familiar with the matter.
Technical complexities and political considerations during an election year are expected to present challenges in the latest round of negotiations.
Previous Negotiation Rounds The 13th round of negotiations for the UK-India Free Trade Agreement took place from September 18 to December 15, 2023. These sessions were conducted both in person in London and Delhi and virtually. Similar to earlier rounds, discussions revolved around goods, services, and investment.
Both India and the UK remain committed to pursuing a comprehensive and ambitious Free Trade Agreement. The 14th round of negotiations is slated for January 2024.
Current Status and Expectations With multiple deadlines passing by, Indian officials are reportedly aiming for a resolution to the FTA talks by January, as the country prepares for general elections in April-May 2024. However, differences on core sensitive issues continue to persist, according to various media reports.
Notable Exclusions Market access for Ayurveda products is not included in the ongoing FTA talks and is planned to be addressed separately. This decision follows a query by The Hindu, where an official UK source clarified that Ayurveda product discussions are not part of the current negotiations.
Other Developments In November, the UK announced its intention to send its “largest ever” delegation to the Bengal Global Business Summit, demonstrating the commitment to enhancing trade ties with India.
Key Issues UK negotiators are emphasizing the need for enhanced protection for their country’s geographical indication (GI) products, particularly those from the agriculture sector, such as Scotch whisky, Stilton cheese, and Cheddar cheese.
Furthermore, discussions surrounding tariffs on electric vehicles (EVs) have been notable. While India has not finalized its position regarding import duties on EVs, there are ongoing deliberations, especially concerning vehicles priced above US$80,000.
Outlook Despite progress made in several areas, certain chapters covering sensitive topics such as intellectual property rights, rules of origin, financial services, work visas, and tariff cuts on key items are yet to be resolved. If consensus is not reached by the end of January, FTA talks might face delays due to India’s impending general elections.
The negotiations hold significant importance for both countries, as they seek to strengthen trade ties and address various economic challenges.
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