Synopsis
India and the UK have agreed to restart negotiations for a Free Trade Agreement. Union Minister Piyush Goyal confirmed the development after a meeting with UK counterpart Jonathan Reynolds, emphasizing the importance of quality and mutual benefit in trade discussions.Key Takeaways
- India and UK to restart FTA negotiations.
- Focus on quality over speed in trade agreements.
- 26 chapters covering diverse sectors in FTA.
- Mutual growth and sustainable development emphasized.
- Collaboration in various sectors strengthens partnership.
New Delhi, Feb 24 (NationPress) Union Minister of Commerce and Industry, Piyush Goyal, announced on Monday that India and the UK have opted to recommence discussions for a Free Trade Agreement (FTA) following a meeting with his UK counterpart, Jonathan Reynolds.
During a meeting at the G-20 Summit in Rio de Janeiro, Brazil, last November, Prime Minister Narendra Modi and his UK counterpart Keir Starmer emphasized the significance of resuming trade discussions promptly.
The recent declaration stems from the dialogues held between the leaders of both nations.
“All options are on the table. We are actively negotiating three interconnected issues - the FTA, the Bilateral Investment Treaty, and a Double Contribution Convention Agreement,” Goyal stated.
Reynolds remarked that India represents a crucial ally for the UK in a world that is increasingly volatile and multipolar.
“We have reignited negotiations for the UK and India FTA. Our aim is to establish a mutually advantageous agreement,” Reynolds, the UK Business and Trade Secretary on a three-day visit to India, added.
Goyal emphasized that India would not hastily finalize a trade agreement. “We will pursue speed but not rush,” he quipped when asked if a deadline for signing the deal had been set.
Reynolds noted, “There is a sense of urgency, and this remains a top priority for the UK government, enjoying strong backing from the UK Prime Minister and key cabinet members.”
However, for the UK, the emphasis is on the quality of trade agreements rather than the rapidity of their completion, he further explained.
Discussions regarding the FTA have been ongoing since January 2022 under the previous Conservative government, with the current Labour Party government also expressing intent to continue these negotiations.
The agreement comprises 26 chapters, covering goods, services, investments, and intellectual property rights. While the UK seeks to reduce tariffs on products like electric vehicles and Scotch whisky, India is advocating for more accessible visa regulations for its professionals in the services sector to enter the UK.
The partnership between India and the United Kingdom has been strengthened through collaboration in areas such as security and defense, emerging technologies, climate, health, education, research and innovation, green finance, and people-to-people connections. Central to this relationship is the shared goal of fostering economic growth and sustainable development.
Both parties have agreed to recommence negotiations aimed at achieving a balanced, mutually beneficial, and forward-thinking agreement that promotes mutual growth and leverages the strengths of the two complementary economies.
