New Delhi:

Commerce and Industry Minister Piyush Goyal met UK Secretary of State for Business and Trade Jonathan Reynolds in Italy and discussed plans to take forward the negotiations on the proposed free trade agreement, an official statement said on Wednesday.

The bilateral meeting took place on the sidelines of the G7 Trade Ministers’ meeting at Reggio Calabria, Italy.

The India-UK talks for the proposed free trade agreement (FTA) began in January 2022. The 14th round of talks stalled as the two nations stepped into their general election cycles.

“Mr Goyal congratulated Mr. Jonathan Reynolds on his appointment and discussed deepening bilateral economic relations. The conversation included plans to take forward the discussions on FTA between India and the UK,” the commerce ministry said.

In an FTA, two or more trading partners either significantly reduce or eliminate customs duties on the maximum number of goods traded between them. Besides, they also ease norms to promote and facilitate trade in services and investments.

There are pending issues in both goods and services sectors.

The Indian industry is demanding greater access for its skilled professionals from sectors like IT and healthcare in the UK market, besides market access for several goods at nil customs duty.

On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionary items.

Britain is also looking for more opportunities for UK services in Indian markets in segments like telecommunications, legal and financial services (banking and insurance).

The two countries are also negotiating a bilateral investment treaty (BIT). There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.

The bilateral trade between India and the UK increased to USD 21.34 billion in 2023-24 from USD 20.36 billion in 2022-23.

The Labour Party’s election manifesto for the recent polls also committed to clinching the deal.

Mr Goyal also holds meetings with other counterparts at the G7 Trade Ministers’ meeting.

“Discussions with Valdis Dombrovskis, Executive Vice President of the European Commission focused on promoting India-EU trade and economic collaborations, including ongoing FTA negotiations,” it said.

During his meeting with New Zealand’s Trade Minister Todd McClay, both ministers explored opportunities to enhance bilateral trade and investment ties for mutual growth.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

The Labour Party’s election manifesto for the recent polls also committed to clinching the deal. File.
| Photo Credit: AFP

With the new government taking charge in Britain, senior officials of India and the U.K. will hold the next round of talks this month for the proposed free trade agreement to resolve the pending issues and close the negotiations, an official said.

The India-U.K. talks for the proposed free trade agreement (FTA) began in January 2022. The 14th round of talks stalled as the two nations stepped into their general election cycles.

Also read | Visas not first priority for India in FTA with U.K.: High Commissioner Doraiswami

The official said the two sides are in touch, and the next round would start this month only.

Britain’s newly-elected Prime Minister Keir Starmer spoke to Prime Minister Narendra Modi on Saturday and said he stood ready to conclude an FTA that worked for both sides.

The two leaders agreed to work towards the early conclusion of a mutually beneficial India-U.K. FTA.

There are pending issues in both the goods and services sectors.

The Indian industry is demanding greater access for its skilled professionals from sectors like IT and healthcare in the UK market, besides market access for several goods at nil customs duty.

On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionary items.

Britain is also looking for more opportunities for U.K. services in Indian markets in segments like telecommunications, legal and financial services (banking and insurance).

The two countries are also negotiating a bilateral investment treaty (BIT).

There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.

The bilateral trade between India and the UK increased to $21.34 billion in 2023-24 from 20.36 billion in 2022-23.

The Labour Party’s election manifesto for the recent polls also committed to clinching the deal.

The new Starmer-led government’s new Foreign Secretary David Lammy is also on the record saying that he wants to finish the job on the FTA and plans to visit India within the first month of being elected.

According to the think tank GTRI (Global Trade Research Initiative), the agreement is nearly finalised and with a few minor adjustments like curtailing the number of visas for Indian professionals, the Labour Party is likely to give its approval.

It has suggested that India should focus on two issues – Carbon Border Adjustment Measure (CBAM) and non-traditional subjects like labour, environment, gender, and intellectual property rights – in the pact.

Historically, India has resisted incorporating these topics into FTAs as they often require domestic policy changes.

The GTRI report has stated that even if the UK agrees to eliminate tariffs on sectors like textiles, Indian exports might still need to meet stringent UK sustainability requirements, and this could adversely affect Indian exports, especially in labour-intensive sectors.

A combination photo of Indian Prime Minister Narendra Modi and the newly elected British Prime Minister Keir Starmer. Photo: AP/ANI

Prime Minister Narendra Modi on July 6 spoke to newly elected British Prime Minister Keir Starmer as the two leaders agreed to work towards an early conclusion of a mutually beneficial India-U.K. free trade agreement, a statement said.

Mr. Modi congratulated him on assuming charge and a remarkable victory of his Labour Party in the election.

The statement said both the leaders recalled the historic relations between India and the U.K. and reaffirmed their commitment to deepen and advance the Comprehensive Strategic Partnership between the countries.

Appreciating the positive contributions of the Indian community in the social, economic and political development of the U.K., they agreed to continue to promote the close people-to-people ties.

Mr. Modi also extended an invitation to Mr. Starmer for an early visit to India as the two leaders agreed to remain in touch, the statement said.

In a post on X, Mr. Modi said that he congratulated Mr. Starmer on being elected as the Prime Minister of the UK. “We remain committed to deepening Comprehensive Strategic Partnership and robust India-UK economic ties for the progress and prosperity of our peoples and global good,” the post said.

Union Minister of Commerce and Industry Piyush Goyal meets Kemi Badenoch, U.K. Secretary of State for Business and Trade, on August 26, 2023
| Photo Credit: ANI

Indian and U.K. officials will continue their negotiations till the month-end to iron out differences on the proposed free trade agreement (FTA), the Commerce Ministry said on August 27.

This meeting will be followed by a review at the higher level, it said.

Following the G20 Trade and Investment Ministers Meeting (TIMM) at Jaipur, the progress of the negotiations was reviewed by Commerce and Industry Minister Piyush Goyal and UK’s Secretary of State for Trade Kemi Badenoch on August 26.

Also read | The U.K.-India relationship is alive with opportunity

“Teams are going to continue negotiations till the end of August 2023 which will be followed by stock taking at the higher level,” it said.

While expressing satisfaction over the last 12 rounds of negotiations wherein several chapters have been finalized, both exuded confidence that the next round of talks to be similarly successful.

“Both Chief Negotiators apprised the ministers about the current state of play, issues outstanding for resolution and their continuous joint efforts to iron out the same,” the Ministry added.

The Ministers directed the officials to maintain a good pace of exchanges with a better understanding of each other’s aspirations and sensitivities.

“Both leaders expressed their unwavering commitment to reaching a conclusion on a fair, balanced, and mutually beneficial trade deal that will enhance economic cooperation between the two countries,” it added.

In a separate statement, the Ministry said that Mr. Goyal and Swiss State Secretary for Economic Affairs Helene Budliger Artieda also held talks on ways to strengthen economic ties.

They reviewed the progress made in the ongoing negotiations for a Trade and Economic Partnership Agreement (TEPA) between India and EFTA (European Free Trade Association).

The EFTA members are Iceland, Liechtenstein, Norway, and Switzerland.

“Both leaders reiterated their shared vision of achieving a mutually beneficial trade deal based on the principle of reciprocity that reflects the evolving economic landscapes of both India and the EFTA countries,” it said.

New Delhi:

Indian and UK officials will continue their negotiations till the month-end to iron out differences on the proposed free trade agreement (FTA), the commerce ministry said on Sunday.

This meeting will be followed by a review at the higher level, it said.

Following the G20 Trade and Investment Ministers Meeting (TIMM) at Jaipur, the progress of the negotiations was reviewed by Commerce and Industry Minister Piyush Goyal and UK’s Secretary of State for Trade Kemi Badenoch on August 26.

“Teams are going to continue negotiations till the end of August 2023 which will be followed by stock taking at the higher level,” it said.

While expressing satisfaction over the last 12 rounds of negotiations wherein several chapters have been finalized, both exuded confidence that the next round of talks to be similarly successful.

“Both Chief Negotiators apprised the ministers about the current state of play, issues outstanding for resolution and their continuous joint efforts to iron out the same,” the ministry added.

The ministers directed the officials to maintain a good pace of exchanges with a better understanding of each other’s aspirations and sensitivities.

“Both leaders expressed their unwavering commitment to reaching a conclusion on a fair, balanced, and mutually beneficial trade deal that will enhance economic cooperation between the two countries,” it added.

In a separate statement, the ministry said that Goyal and Swiss State Secretary for Economic Affairs Helene Budliger Artieda also held talks on ways to strengthen economic ties.

They reviewed the progress made in the ongoing negotiations for a Trade and Economic Partnership Agreement (TEPA) between India and EFTA (European Free Trade Association).

The EFTA members are Iceland, Liechtenstein, Norway, and Switzerland.

“Both leaders reiterated their shared vision of achieving a mutually beneficial trade deal based on the principle of reciprocity that reflects the evolving economic landscapes of both India and the EFTA countries,” it said. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)