Commerce and Industry Minister Piyush Goyal met UK Trade and Business Secretary Jonathan Reynolds in Italy and discussed plans to take forward negotiations on a proposed free trade agreement, an official statement said on Wednesday.
This bilateral meeting took place on the sidelines of the G-7 Trade Ministers meeting in Reggio Calabria, Italy.
India-UK negotiations for a proposed free trade agreement (FTA) began in January 2022. The 14th round of talks stalled as both nations entered their general election cycles.
The Commerce Ministry said, “Goyal congratulated Mr Jonathan Reynolds on his appointment and discussed deepening bilateral economic ties. The talks also included plans to take forward discussions on an FTA between India and the UK.”
In FTAs, two or more trading partners either substantially reduce or eliminate customs duties on a large number of goods traded between them. In addition, they also ease norms to promote and facilitate trade in services and investment.
Issues are pending in both goods and services sectors.
Indian industry is seeking greater access to the UK market for its skilled professionals from sectors such as information technology and healthcare, besides market access for a number of items at zero customs duty.
On the other hand, Britain is seeking significant cuts in import duties on goods such as Scotch whisky, electric vehicles, lamb, chocolate and some confectionery items.
The UK is looking for more opportunities for UK services in the Indian markets in sectors such as telecoms, legal and financial services (banking and insurance).
The two countries are also negotiating a Bilateral Investment Treaty (BIT). The agreement has 26 chapters, covering goods, services, investments and intellectual property rights.
Bilateral trade between India and the UK is set to increase from US$ 20.36 billion in 2022–23 to US$ 21.34 billion in 2023–24.
The Labour Party’s election manifesto in the recent elections also expressed a commitment to fulfil this agreement.
Mr Goyal also holds meetings with other counterparts at the G7 Trade Ministers meeting.
“Discussions with European Commission Executive Vice-President Valdis Dombrovskis focused on promoting India-EU trade and economic cooperation, including the ongoing FTA negotiations,” it said.
During his meeting with New Zealand Trade Minister Todd McLeay, the two ministers explored opportunities to enhance bilateral trade and investment relations for mutual growth.
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