Under the services chapter of the free trade agreement, there are no customs duty concessions given to each other…reports Asian Lite News
India and the UK are seeking equal treatment in each other’s market for their respective companies engaged in the services sector under the proposed free trade agreement, which is under negotiations, a government official said.
The two countries are looking at promoting trade in services through this agreement, negotiations for which was launched on January 13, 2021.
As many as 10 rounds of talks have been completed till June this year and both sides are aiming to conclude the negotiations at the earliest.
In the services sector, the official said the UK is showing keen interest in areas such as financial sectors, while India is looking at areas such as education and the movement of skilled professionals.
Under the services chapter of the free trade agreement, there are no customs duty concessions given to each other.
The two trading partners negotiate issues such as giving national treatment to Indian and British companies in different sectors and easing norms to promote trade in services like such as visa processes for the skilled labour force and easy foreign direct investment norms in the sector.
“Regular meetings are held at higher levels to review the progress, resolve the outstanding issues and discuss the way forward in negotiations. So far nothing has firmed up in the services sector,” the official, who did not wish to be identified, said.
“The UK is an important financial services centre of the world, so they always have interest in that,” the official added.