India, UK trade ministers review progress of talks on proposed FTA

India and Britain on Saturday discussed the progress of negotiations on the proposed Free Trade Agreement (FTA), the talks of which have reached the final stage.

The progress was discussed by Minister for Trade and Industry Piyush Goyal and British Minister for Business and Trade Kemi Badenoch in Osaka, Japan.

Both ministers are in Japan for the meeting of the Group of Seven (G7) trade ministers in Osaka.

Discussed the progress of India-Britain Free Trade Agreement negotiations with British Business and Trade Minister Kemi Badenoch, Goyal said on social media platform

Negotiations are underway between senior officials of India and Britain to bridge differences over issues such as rules of origin and services sector, with an aim to conclude discussions on the proposed free trade deal at the earliest.

India and Britain launched talks on a trade deal in January 2022, aiming to finalize it by Diwali last year (October 24, 2022), but the deadline was missed due to political developments in Britain.

There are 26 chapters in the agreement, including goods, services, investments and intellectual property rights. An investment treaty is also being negotiated as a separate agreement between India and Britain.

These investment treaties help promote and protect investments in each other’s countries. The main point of contention in this pact is the dispute settlement mechanism.

Indian industry is demanding greater access for its skilled professionals from sectors such as IT and healthcare in the UK market, in addition to market access for several goods without customs duties.

On the other hand, Britain is seeking a significant reduction in import duties on goods such as Scotch whisky, cars, lamb, chocolates and certain confectionery. Britain is also looking to expand opportunities for British services in Indian markets in segments such as telecommunications, legal and financial services (banking and insurance).

Bilateral trade between India and the United Kingdom increased from $17.5 billion in 2021-2023 to $20.36 billion in 2022-2023.

Furthermore, Goyal also held bilateral meetings in Osaka with US Trade Representative (USTR) Katherine Tai; Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala; Japanese Minister of Economy, Trade and Industry Nishimura Yasutoshi; Japanese trading and investment company Matsui and Co; Director and Chairman of the Board of Directors Tatsuo Yasunga, and Australian Minister for Trade and Tourism Don Farrell.

He held a productive discussion on scaling up India-US trade and investment ties with USTR Katherine Tai, he said.

The Indian minister discussed greater cooperation with the head of the WTO to ensure free and fair trade between member states.