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Indian team to head to UK to resolve FTA issues

Dubai, Dec 01 (ANI): Prime Minister Narendra Modi meets United Kingdom Prime Minister Rishi Sunak during the 28th Conference of the Parties (COP28), in Dubai on Friday. (ANI Photo)

On March 12, Prime Minister Narendra Modi and UK counterpart Rishi Sunak reaffirmed their commitment to work towards an “early conclusion of a mutually beneficial FTA…reports Asian Lite News

A team from India’s commerce ministry will head to United Kingdom (UK) this week as both sides look to iron out outstanding issues pertaining to the proposed Foreign Trade Agreement (FTA) between them, Commerce Secretary Sunil Barthwal said on April 15.

“A team from India is going this week to the UK and some are already there. This is a continuation of the 14th round of talks,” Barthwal added.

Separately, the ministry on April 15 said, India and UK have made “good progress and majority of difficult issues are towards resolution.”

“A couple of key priority issues to seal the deal are being ironed out to have a balanced outcome,” the ministry added.

Negotiations between India and the UK for a trade agreement began on January 2022 with an initial deadline of Diwali 2022. There are 26 chapters in the pact, which include goods, services, investments, and intellectual property rights.

On March 12, Prime Minister Narendra Modi and UK counterpart Rishi Sunak reaffirmed their commitment to work towards an “early conclusion of a mutually beneficial FTA.”

Both sides are still looking to agree on matters around market access with one of the sticking points being London’s reluctance over New Delhi’s stand that British automakers have to step up the utilisation of local components in their vehicles to 45 percent to avail of concessions in India.

Recently, a team from UK visited India from March 5-7 to negotiate on outstanding issues. For the proposed FTA between India and European Union (EU), the eight round of talks is being planned in May or June 2024 in Brussels. India and EU completed the seventh round of negotiations in February 2024.

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UK, India put FTA talks on ice

Dubai, Dec 01 (ANI): Prime Minister Narendra Modi meets United Kingdom Prime Minister Rishi Sunak during the 28th Conference of the Parties (COP28), in Dubai on Friday. (ANI Photo)

The next round of formal trade talks can commence only after the Lok Sabha polls have concluded…reports Asian Lite News

The 14th round of the free trade agreement (FTA) negotiations between India and the UK has now closed, with formal negotiations being put on hold as India heads into election campaign mode as the general election schedule is announced on Saturday.

According to UK officials familiar with the discussions, a lot of progress has been made but the teams are not in a position to conclude an agreement which led to the Round 14 closing on Friday.

The next round of formal trade talks can commence only after the Lok Sabha polls have concluded.

The India-UK FTA negotiations, which opened in January 2022, are aimed at securing an ambitious outcome for bilateral trade currently worth around GBP 38.1 billion a year as per official statistics from last month.

We anticipate that while some talks might happen between rounds, the next round of negotiations will take place after the Indian elections, official sources in the UK said.

Neither side is walking away from talks. It’s just that we don’t have what we need yet to finalise a deal that meets our joint ambition across goods, services and investment. We’re very proud of the track record we have and how far we’ve been able to come with this trade deal so far. Negotiators have worked really hard in the past few years and we’ve managed to get a lot of chapters closed, the sources said.

The development follows a phone call between Prime Minister Narendra Modi and his UK counterpart, Rishi Sunak, earlier this week when both leaders reaffirmed their commitment towards securing a historic and comprehensive deal and reiterated the importance of reaching an ambitious outcome.

The UK and India are continuing to work towards an ambitious trade deal. Whilst we don’t comment on the details of live negotiations, we are clear that we will only sign a deal that is fair, balanced and ultimately in the best interests of the British people and the economy,” a UK Department of Business and Trade spokesperson said.

Last week, Commerce and Industry Minister Piyush Goyal told that long-term benefits for the economy were the key in such FTA negotiations and that India was seeking a balanced, fair and equitable deal.

His UK counterpart, Secretary of State for Business and Trade Kemi Badenoch, said during a trade conference in London earlier that while a trade deal with India is possible before general elections in the country, Britain does not want to use that as a deadline.

The bigger the country, the more complex the trade agreement. And also, the more different the economy is, the harder it is to negotiate… India is still very protectionist, where we are very, very liberalised, Badenoch noted.

The UK wants India to significantly reduce tariffs on UK exports such as food, cars and whisky that can currently be as high as 150 per cent. India in turn is concerned about the fairness of rules applied to Indian workers temporarily transferred to the UK on business visas who have to pay national insurance, despite not being eligible for UK pensions or social security benefits.

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Indian delegation to visit London to resolve FTA issues

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A TRQ allows a lower tariff rate on imports of a given product up to a specified quantity. New Delhi is said to be considering a concessional tariff of 30 percent on 2,500 electric vehicles imported annually from the UK priced above $80,000…reports Asian Lite News

A delegation from India, led by Commerce Secretary Sunil Kumar Barthwal, is likely to be in London from February 21-24 to conduct another round of negotiations on the proposed Foreign Trade Agreement (FTA) with United Kingdom (UK) as disagreements remain over certain aspects of market access, an Indian government official told Moneycontrol.

“FTA talks may go on for longer, if outstanding issues remain unresolved even as India looks to conclude negotiations before general elections schedule in April-May 2024”, the official added.

According to the official, these outstanding issues include UK’s reluctance over India’s stand that British automakers have to increase utilisation of local components in their vehicles to 45 percent to get concessions from New Delhi.

India has been mulling Tariff Rate Quotas (TRQ) to meet the UK’s demand for a reduction in import duties on electric vehicles from Britain as part of the trade deal. The two sides are also yet to agree on Britain’s demand for an import duty cut on its whisky, the official added.

A TRQ allows a lower tariff rate on imports of a given product up to a specified quantity. New Delhi is said to be considering a concessional tariff of 30 percent on 2,500 electric vehicles imported annually from the UK priced above $80,000.

Commerce Secretary on February 15 said that India will safeguard the interest of farmers as well as goods covered under the Production-Linked Incentive (PLI) scheme while aiming for commercial gains through the proposed FTA with UK.

“Majority of the chapters are either closed or are at advanced stage of negotiations. Recently, a high-level UK delegation visited India (23rd-25th January 2024) and discussions were held at higher level as well as team level to iron out differences,” the commerce ministry said on February 15.

The FTA between India and the UK, negotiations for which were launched on January 2022, was originally slated for Diwali 2022. There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights. So far, 14 round of talks have been conducted between the two sides.

ALSO READ-India, EU Set to Begin Seventh Round of FTA Talks

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Sunak hopeful on conclusion of India-UK FTA

India’s Defence Minister Rajnath Singh and Rishi Sunak agreed on the need for the two nations to work together in trade, defence and technology sectors…reports Asian Lite News

Union Defence Minister Rajnath Singh called on UK Prime Minister Rajnath Singh at 10, Downing Street in London on Wednesday. During the meeting, Sunak expressed hope that the ongoing Free Trade Agreement (FTA) could be brought to a successful conclusion soon.

Rajnath Singh and Rishi Sunak agreed on the need for the two nations to work together in trade, defence and technology sectors, Ministry of Defence said in a press release. He expressed the keenness of the UK government to strengthen defence and security pillars of the bilateral partnership.

Notably, India and the UK are negotiating a Free Trade Agreement (FTA). Talks for FTA between India and the UK started in 2022. The thirteenth round of negotiations for the UK-India Free Trade Agreement concluded in December, with both sides resolving that they would continue to negotiate towards a comprehensive and ambitious trade pact.

“Prime Minister Sunak fully agreed with the Raksha Mantri on the need for UK and India to work in the domains of trade, defence and technology. In particular, he expressed hope that the ongoing Free Trade Agreement (FTA) negotiations could be brought to a successful conclusion soon,” Ministry of Defence said in a press release.

“He also underlined his keenness, and that of his Government, to strengthen the defence and security pillar of the bilateral relationship, including through Government backing for stronger business and technology partnerships with Indian counterpart entities,” it added.

The meeting between the two leaders was “warm and cordial,” according to the press release. During the meeting, Rajnath Singh highlighted that both nations have made significant strides in moulding and recrafting the historic ties into a modern, multifaceted and mutually beneficial partnership, under the direction of the leaders of both nations.

Union Defence Minister Rajnath Singh recalled the recent enhancement in bilateral defence engagement, spanning joint exercises, training, capability building, increased interoperability, military-to-military ties especially in the maritime sector.

He emphasised the ongoing efforts to enhance defence industrial cooperation, including in the technology domain. Rajnath briefed Rishi Sunak about his positive interactions with the UK defence industry and the new positive energy in the bilateral defence relationship.

“The Raksha Mantri stated that the UK and other like-minded countries should work with India for strengthening a peaceful and stable global rules-based order, including through partnering India in its inexorable rise, which can be strengthened, reinforced and speeded up with friendly collaboration,” Ministry of Defence said in a press release.

During the meeting, Rajnath Singh gifted a Ram Darbar statue to Rishi Sunak. The meeting was also attended by the UK National Security Adviser, Tim Barrow. During the meeting, he stated that PM Narendra Modi is leading the quest of 1.4 billion Indians towards the national objective of becoming a developed nation by mid-21st century.

In the meeting with Rishi Sunak, Singh noted that PM Modi’s “efforts have borne remarkable fruits, growth is sustainably on the upswing, poverty has been reduced drastically, and a business-friendly architecture has been put in place.” He expressed the readiness of the Indian government at the international level to partner with friends like the UK to strengthen the rules-based world order.

In a post shared on X, Rajnath Singh stated, “Had a very warm meeting with the UK Prime Minister, Shri @rishisunak in London. I had the opportunity to discuss a wide range of issues with him. We discussed issues pertaining to defence, economic cooperation and how India and UK could work together for strengthening a peaceful and stable global rules-based order.”

Currently, Rajnath Singh is on an official visit to UK. It is the first visit by a sitting Indian Defence Minister to the UK in more than 20 years.

Earlier, Union Defence Minister Rajnath Singh held “insightful deliberations” with UK Foreign Secretary David Cameron on boosting ties between the two nations.

Taking to X, Rajnath Singh stated, “Insightful deliberations with the UK Foreign Secretary, Mr. David Cameron on boosting India-UK ties and deepening cooperation between both the countries.”

The UK is seeking greater access to the Indian market for items such as dairy products, automobiles including electric vehicles, and Scotch whiskey. India has a high import duty on automobiles (100%) and whiskey (150%). Indian industry has expressed its willingness to substantially reduce tariffs in automobiles and whiskey, provided London reciprocates as per the Indian conditions.

The India-UK FTA negotiations was launched on January 13, 2022 and 24 out of total 26 chapters have been mutually agreed and the two partners converge on many points in the remaining chapters, he said. The talks are lingering, initially due to a change in the leadership in the UK, and later due to the differences between the two sides over violent protests by Khalistani elements in London and other British cities.

Compared to the ongoing talks with the UK, India expeditiously concluded two major FTAs in 2022. The first round of negotiations for a India-UAE Comprehensive Economic Partnership Agreement (CEPA) was held on September, 2021, the FTA was signed February 18, 2022 and it entered into force from May 1, 2022.

ALSO READ-India-UK FTA dialogue to enter final stage on Jan 10

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UK Minister’s Timely Visit to India Commended by British High Commissioner

Ahmad is also slated to visit Ahmedabad and attend Vibrant Gujarat, an innovation-focused summit, the British High Commission said in a statement…reports Asian Lite News

British High Commissioner to India Alex Ellis has said UK Minister of State, Lord (Tariq) Ahmad has chosen excellent timing to visit Tamil Nadu and Gujarat, the states with the second and third largest economies in India.

“Welcome back to India @tariqahmadbt – excellent timing to visit the states in India with the 2nd and 3rd largest economies, two centres of growth and UK-India cooperation,” the British High Commissioner to India wrote on ‘X’ on Monday.

British Minister of State, Lord (Tariq) Ahmad is on a three-day visit to India from Monday to launch two new UK-funded sustainability projects at the ongoing Tamil Nadu Global Investors Meet (TNGIM).

Ahmad is also slated to visit Ahmedabad and attend Vibrant Gujarat, an innovation-focused summit, the British High Commission said in a statement.

Lord (Tariq) Ahmad is the British Minister of State for the Middle East, South Asia, UN and the Prime Minister’s Special Representative on Preventing Sexual Violence in Conflict.

While in Chennai, the minister will launch a heat mitigation project alongside Tamil Nadu’s State Planning Commission. The project will provide recommendations to the government of Tamil Nadu to address extreme heat-related deaths and the loss of vital ecosystems, the British High Commission statement said.

Also, with the Tamil Nadu Department of Environment and Climate Change, the minister will launch an Electronic and Battery Waste Management project, which will develop a plan to reduce battery waste, it said.

As Tamil Nadu and Gujarat are two of India’s largest economies, the minister will use his trip to highlight the strong UK-India trade partnership and explore new opportunities to collaborate, including on clean energy growth, the statement added.

The British minister said, “Tamil Nadu and Gujarat are leading the way in the development of emerging technologies, and I am delighted to see first-hand British businesses pioneering innovation in the region.

“During my visit, I look forward to further promoting joint innovation projects alongside dynamic Indian businesses – from renewable manufacturing to financial services. These are made possible through the close trade partnership we have between our two countries,” he said.

At the flagship investment summit TNGIM in Chennai, Lord Ahmad will deliver a keynote speech on the success of innovative UK-India projects in climate and energy, the statement said.

He will continue to showcase the sustainable success of British businesses overseas at a great reception and will see first-hand how British businesses are supporting clean growth in India.

At the Biennial Investors’ Summit in Vibrant Gujarat, the Minister will celebrate the close ties between the UK and India through business, culture, and the great links between our peoples.

While at Vibrant Gujarat, he will witness the signing of an MoU between the UK’s Abertay University and India’s Ecole Intuit Lab. The partnership agreement will see teaching, research and innovation expertise shared between the two organisations, the release said. (ANI)

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India-UK FTA dialogue to enter final stage on Jan 10

@KemiBadenoch-Twitter

According to the government, India-UK free trade agreement talks completed 13 rounds of negotiations that took place from 18 September to 15 December…reports Asian Lite News

The 14th and the final round of negotiations for a free trade agreement (FTA) between India and the UK will enter the last lap from Wednesday and are likely to take up remaining issues such as business mobility, Scotch whiskey, automobiles, farm products, pharmaceuticals, rules of origin, and a separate pact to boost bilateral investments.

According to the government, India-UK free trade agreement talks completed 13 rounds of negotiations that took place from 18 September to 15 December.

Negotiators of both the parties – India and UK – discussed complex issues, including goods, services, and investment, in person as well as virtually. The in-person dialogues were held in London and Delhi.

New Delhi : Union Minister of Commerce and Industry Piyush Goyal in a meeting with UK Secretary of State for International Trade Kemi Badenoch, in New Delhi on Tuesday, December 13, 2022. (Photo: PIB/IANS)

Further, the government has reiterated that the UK and India will continue to negotiate towards a comprehensive and ambitious FTA.

India and the UK are committed to developing a comprehensive and mutually beneficial trade relationship, as demonstrated by the ongoing discussions. India and the United Kingdom’s bilateral trade grew from $17.5 billion in 2021–2022 to $20.36 billion in 2022–2023.

The India-UK FTA has encountered multiple obstacles during the negotiation process, resulting in the ambitious agreement being delayed by more than a year from its original deadline.

India’s demand for visas for professionals under the proposed free trade agreement (FTA) with the UK is among several sticky issues currently being negotiated by both countries.

While India would like its companies to be able to hire people (both locally in the UK and from India) after setting up shop there, the UK is concerned with migration, an emotive issue in the country that led to Brexit in 2016.

Other issues being negotiated by both sides include duties on automobiles, alcohol (whiskey and gin), and electric vehicles (EV), on which India is yet to reach a conclusive position.

On EVs, currently, the government’s PLI (production-linked incentive) scheme provides incentives up to 18% of eligible sales of electric vehicles and their components. The government notified the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) scheme with a budgetary outlay of Rs 10,000 crore for five years starting 1 April 2019 to promote hybrid/electric technology in transportation, reduce dependence on fossil fuels, and address issues of vehicular emissions.

Ending free movement of people and taking back control of its borders were key factors leading to Brexit in 2016. While it still is a key issue, the UK government has also had some setbacks.

ALSO READ-India, Eurasian Economic Union FTA talks to resume in Jan

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India rejects criticism over FTA delays  

In April last year, the two sides had set a Diwali deadline for concluding the free trade agreement but the deal could not be finalised in view of differences over certain issues as well as political developments in the UK…reports Asian Lite News

India’s External Affairs Minister S Jaishankar on Monday took strong objection to those criticising New Delhi for delays in firming up the proposed free trade agreement with the UK and said careful scrutiny is required as such pacts could impact livelihoods of people.

“I hear this naysayers’ narrative coming back — why isn’t India quickly signing up (the FTA) with the UK? Nobody says why isn’t the UK quickly signing up with India? So somewhere, it is like we have to make that accommodation,” he said.

The two sides are learnt to have finalised over 20 out of 26 chapters in the FTA and are now looking at sealing it by bridging differences on certain contentious issues including mobility of people and import duty concessions on certain items.

In April last year, the two sides had set a Diwali deadline for concluding the free trade agreement but the deal could not be finalised in view of differences over certain issues as well as political developments in the UK.

“We are right now in the middle of some fairly serious negotiations with some fairly serious partners… I hear this naysayer narrative coming back, why isn’t India quickly signing up with the UK? Nobody says why isn’t the UK quickly signing up with India? So somewhere, it is like we have to make that accommodation. We are the people who somewhere are holding back, and we should speed it up because every FTA and every open step is an achievement in itself,” Jaishankar said.

In his address, the external affairs minister said, “FTAs have a use” but at the same time underlined the need for careful scrutiny of various provisions.

Jaishankar said he would like to “very judiciously consider the merits and the risks of an FTA” as any decision for a country like India could impact millions of people and it could be a matter of their livelihoods.

Jaishankar also took a pot shot at the tendency of cherry picking by some of the major powers.

Cherry picking what should be a level playing field, what should not, what should be open what should not — at the end of the day it is all about freezing leads which countries have acquired, he said.

“Those who have acquired dominance, especially economic dominance will through process of negotiations, through shaping of narratives create systems which would appear fair even if they are not,” he said.

Jaishankar also underlined the importance of introspecting about India’s foreign policy in the last 75 years.

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14th round of India-UK FTA talks to start in Jan

Dubai, Dec 01 (ANI): Prime Minister Narendra Modi meets United Kingdom Prime Minister Rishi Sunak during the 28th Conference of the Parties (COP28), in Dubai on Friday. (ANI Photo)

India and the UK launched the talks for a free-trade agreement (FTA) in January 2022, to conclude talks by Diwali (October 24, 2022), but the deadline was missed due to political developments in the UK…reports Asian Lite News

India and the UK officials in January next year will hold the next round of talks for the proposed free trade agreement (FTA) to resolve remaining issues, the commerce ministry said on Monday.

The 13th round of negotiations for the proposed pact was held between September 18 and December 15.

“The UK and India will continue to negotiate towards a comprehensive and ambitious Free Trade Agreement. The fourteenth round of negotiations will take place in January 2024,” the ministry said in a statement.

These negotiations focussed on complex issues including goods, services, and investment.

An Indian team was in London recently.

Issues which need to be resolved include duty cuts on electric vehicles and whiskey and the movement of professionals. Talks are also progressing on the proposed bilateral investment treaty (BIT).

India and the UK launched the talks for a free-trade agreement (FTA) in January 2022, to conclude talks by Diwali (October 24, 2022), but the deadline was missed due to political developments in the UK.

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

On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, automobiles, 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 bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.

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Never Been Closer to Reaching Pact on FTA With India: EFTA

Norway Trade Minister Vestre informed that he is happy with the progress on the free trade agreement between India and four European countries…reports Asian Lite News

European Free Trade Association member countries and India are making “progress” on an agreement on free trade, with officials saying that the two sides have “never been closer” to a pact.

In exclusive interviews with ANI on Wednesday, Norwegian Trade Minister Jan Christian Vestre and Swiss State Secretary for Economic Affairs Helene Budliger Artieda, commended growing ties between India and EFTA member countries.

However, they refused to comment on the deadline for the finalisation of talks on free trade.

The European Free Trade Association is a trade organisation and free trade area consisting of four European states- Iceland, Liechtenstein, Norway and Switzerland.

The two officials were on a visit to India to hold a discussion with the Indian government on a trade pact between New Delhi and the four nations.

EFTA and India began talking about a Free Trade Agreement 15 years ago, and despite 20 rounds of negotiations, they have not yet been closed.

Norway Trade Minister Vestre informed that he is happy with the progress on the free trade agreement between India and four European countries.

Though both ministers refrained from mentioning any deadline for the pact, they said both sides are positive and they are hoping that the agreement will be finalised “soon.”

This is the third visit of Vestre to India in 2023 and the seventh for Artieda

Without giving details about sticking points in negotiations, the Minister said, “We have been negotiating on a potential free trade agreement for the last 15 years. We have made quite some efforts this year. This is my third visit to India this year. And I’m very happy to see that we are also progressing now. We will move forward. We have resolved a lot of issues. There are some remaining issues. But I’m still optimistic that there might be opportunities for us to enter into such an agreement, which will be beneficial for both sides.”

Vestre held meetings with Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal during his stay.

Helene Budliger Artieda, meanwhile, said that the two sides “have never been closer” to a pact on trade.

“It’s been ongoing for 15 years. And I think we’re now in the position where the five countries are motivated to dedicate time and resources. I’ve been to India seven times this year. I think that that represents intention and positive discoveries… we can say that it’s an ongoing negotiation, but I think we’ve never been closer (to an agreement) during this last 15 years,” the Minister mentioned.

When asked about India’s role amid the current geopolitical situation, Artieda said: “Geopolitics are changing our world more rapidly. So I think it’s geopolitics outside, but we’re also now all of a sudden waking up to a world in poly crisis.”

“On the increase, we’re seeing that less than 50 percent of people actually live in non-democratic countries. So that’s that’s, that’s a big concern. And I think India has what it takes to be the lighthouse for democracy,” she said.

Meanwhile, Vestre talked about the “successful” G20 presidency, saying India showcased its stand and how India would like to connect with like-minded partners, friends and allies all around the world.

“I think India has an extremely important role to play, and again, we talked about the green transition. I mean, this matters because it represents 1.4 million people, one of the biggest economies in the world, and I think India is now in fifth place when you look into the GDPs, so when India moves, the world starts moving,” he said. (By Vishu Adhana/ANI)

ALSO READ-Indian Goods worth $3.7B Entering Oman to Get FTA Boost

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Indian Goods worth $3.7B Entering Oman to Get FTA Boost

Oman’s import duties currently range from 0 to 100%, with specific duties of 100% applicable to certain meats, wines, and tobacco products…reports Asian Lite News

A comprehensive free trade agreement between India and Oman could significantly boost over 83.5% of Indian goods valued at USD 3.7 billion, according to a report released by the Global Trade Reproach Initiative (GTRI), titled “India-OMAN CEPA: Gateway to Middle Eastern Markets and Beyond.”

These goods, including gasoline, iron and steel, electronics, machinery, aluminum oxide, textiles, plastics, and more, currently face a 5% import duty in Oman, according to PTI news report.

India and Oman are currently in negotiations for a comprehensive economic partnership agreement (CEPA), intending to reduce or eliminate customs duties on a wide range of goods agreed upon by both nations. The report suggests that a successful trade agreement would lead to the elimination of duties on major export items such as motor gasoline, iron and steel products, electronics, machinery, aluminum oxide, textiles, and more.

However, approximately 16.5% of Indian exports to Oman, valued at USD 800 million, which already have duty-free access, will not experience additional benefits from the agreement. These items include wheat, basmati rice, fruits, vegetables, medicines, fish, tea, and coffee.

GTRI Co-Founder Ajay Srivastava emphasized that while duty elimination would benefit most Indian exports, achieving significant growth in Oman, a small, middle-income economy, would also depend on improving product quality. Srivastava expressed optimism that India could substantially increase exports post the free trade agreement, given that over 80% of Indian goods currently enter Oman with an average 5% import duty.

Oman’s import duties currently range from 0 to 100%, with specific duties of 100% applicable to certain meats, wines, and tobacco products. India’s merchandise imports from Oman were USD 7.9 billion in the fiscal year 2022-23, with petroleum products and urea accounting for 73% of the imports.

The report also highlighted the potential benefits of the free trade agreement for India’s services sector. In 2022, India’s service exports to Oman were valued at approximately USD 2.8 billion, while imports were USD 0.2 billion. The report suggested that India could seek increased market access for business services and computer information services in Oman, possibly negotiating for priority visas for Indian professionals on short-term assignments.

Additionally, the report mentioned that India might request Oman’s track approval for Indian pharmaceutical products already registered with regulatory authorities such as the US Food and Drug Administration (USFDA), UK drug regulator MHRA, and the European Medicines Agency, aligning with a similar proposal in India’s free trade agreement with the UAE.

Overall, the report highlighted the potential for India to diversify and strengthen its economic ties with Oman through the proposed free trade agreement, benefiting both nations in terms of trade, services, and economic collaboration.

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