There are 26 chapters in the agreement, including goods, services, investments, and intellectual property rights.
Though the negotiations between the two countries are in their final stages, both sides still need to resolve differences on major issues such as the British demand for significant customs duty concessions on scotch whisky and EVs, as well as the liberalization of norms in service sectors like banking, insurance, and legal. Additionally, the Indian demand for easy movement of professionals is another key issue that needs to be addressed, the official added. The two countries have concluded 13 rounds of talks, and the next round is scheduled for January 2024.
The Indian industry is seeking greater access for its skilled professionals in sectors like IT and healthcare in the UK market, as well as market access for goods such as textiles and leather with nil customs duties.
On the other hand, the UK is looking for a significant reduction in import duties on goods like scotch whiskey, automobiles (including EVs), lamb meat, chocolates, and certain confectionary items. Britain also aims to explore more opportunities for UK services in Indian markets, particularly in telecommunications and financial services. The official, who preferred to remain anonymous, stated that there are also a few pending issues in the proposed bilateral investment treaty (BIT).
India and the UK initiated talks for a free-trade agreement (FTA) in January 2022.
The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.
Furthermore, the official mentioned that progress is being made on proposed trade agreements with Oman and the European Free Trade Association (EFTA) bloc.
India and the EFTA bloc (Iceland, Liechtenstein, Norway, and Switzerland) are currently negotiating a Trade and Economic Partnership Agreement (TEPA) to enhance economic ties.
