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New Delhi: India is contemplating a strategic shift to address outstanding concerns in concluding the free trade agreement (FTA) with the UK, including issues related to relaxations in services sectors, mobility, and visa norms, two people aware of the matter said.
Both parties have also underscored the significance of finding a ‘feasible’ solution to expedite the agreement process and seal the deal, they added.
“India is planning to ‘soften’ its stand on some of the sticky issues in the trade negotiations with the UK. A similar approach is expected from its counterpart, without compromising their interests, one of the two people said, seeking anonymity. Signing the bilateral trade deal holds equal importance for both nations, he added.
India and the UK initiated the FTA discussions in January 2022 to bolster the economic ties. Now, they are in the midst of the 14th and final round of discussions, which began on 10 January. However, the negotiations are currently on hold and are expected to resume after the Lok Sabha elections.
Both countries are actively working towards a fair and balanced agreement, and are in favour of closing the deal at the earliest, considering its significance for both the economies, the second person said.
Mint’s report on 7 March had indicated that the India-UK trade deal may be postponed until after the general elections if consensus was not reached on specific issues.
Queries emailed to spokesperson of the Union commerce ministry and a UK official did not elicit any response till press time.
“The window for concluding the FTA is narrowing, given the limited time between national elections on both sides. While technical negotiations have brought us this far, a political grand bargain might be necessary to break the gridlock, and London might need a resolution more than New Delhi at this juncture,” said Dr. Dattesh Parulekar, assistant professor of international relations, Goa University.
“India’s recently signed EFTA agreement should exert pressure on the UK to seek a favorable outcome,” he added. “The dimensions of mobility and visa facilitation privileges are crucial bottom-lines that will determine the fairness of this arrangement. Any attempt to link them with demands for expanded market access would be considered unethical and unsustainable.”
To date, both parties have been unable to resolve key issues, including demands for visas, mobility rights for Indian skilled professionals, and duty-free access for certain Indian goods.
Recent attempts to narrow these differences involved a visit by an Indian delegation led by commerce secretary Sunil Barthwal to London in February, followed by a UK team’s visit to New Delhi on 5 March to fast-track the dialogues. The Prime Minister’s Office has also been reviewing the FTA’s progress.
With bilateral trade growing from $17.5 billion in FY22 to $20.36 billion in FY23, India and the UK are committed to developing a comprehensive and mutually beneficial trade relationship.
The FTA’s journey has been marred by delays, extending beyond its initial deadline by over a year, primarily due to complex issues like professional visas, duties on various goods, and migration concerns—a sensitive subject in the UK since Brexit.
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Published: 17 Mar 2024, 07:53 PM IST
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