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UKIBC bats for India FTA before elections in both nations

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McCole also said that the bilateral investment treaty between the two countries will help investments from the UK to India rise and vice-versa…reports Asian Lite News

UK-India Business Council (UKIBC), a trade body with a mission to grow trade and investments between the two countries, on Monday said the negotiations on the Free Trade Agreement (FTA) should conclude before the general elections due in both nations next year.

Thirteen rounds of negotiations have been already completed between India and the UK on the FTA.

“Because of the general elections in India and the UK going to polls next year, it is important that the negotiations for the proposed FTA are concluded early. Otherwise, there will be a pause in the negotiations while the general elections are on,” UKIBC Managing Director Kevin McCole said.

He said though the election date in the UK has not yet been fixed, the polls may be held between May and November next year.

There is a risk that negotiations may have to pause till the elections in India and the UK are over, he said.

McCole also said that the bilateral investment treaty between the two countries will help investments from the UK to India rise and vice-versa.

According to him, out of GBP62 billion invested globally by the UK in 2021, India only got GBP 2 billion.

“Once the bilateral investment treaty is signed, one could expect a larger share of the UK’s global investments in India”, he added. McCole said the UK is open to lower its tariffs on textiles from India.

“Presently, tariff on textiles from India is 12 per cent. Tariffs on textiles from Bangladesh and Sri Lanka are lower,” he said.

ALSO READ-UK seeks protection for GI products under FTA with India

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UK seeks protection for GI products under FTA with India

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It also prohibits the use of terms like ‘kind’, ‘style’, and ‘type’ for products that fall under this protection. Currently, this higher level of protection is exclusive to wines and spirits…reports Asian Lite News

The UK’s demand of a higher level of protection for its GI products from the agriculture sector under the proposed free trade agreement (FTA) with India remains an unresolved issue as the talks for the pact are on to iron out differences, an official said.

British GI (Geographical Indication) products include Scotch whisky, Stilton cheese and Cheddar cheese. A GI is primarily an agricultural, natural or manufactured product (handicrafts and industrial goods) originating from a definite geographical territory. Typically, such a name conveys an assurance of quality and distinctiveness, which is essentially attributable to the place of its origin.

Once a product gets this tag, any person or company cannot sell a similar item under that name. India normally provides general protection for violation of GI rules, but the UK is seeking a higher level of protection, the official, who did not wish to be named, said. “Negotiations are going on between the two countries. There are some issues pending in the intellectual property rights (IPRs) chapter,” the official added.

According to experts, the Trade-Related Aspects of Intellectual Property Rights (TRIPS) under the World Trade Organisation outlines an elevated level of protection for GIs. This enhanced protection prohibits the use of a GI if the product does not genuinely originate from the designated area, regardless of whether the public is misled or the true origin is specified. This ensures complete protection of a GI, safeguarding its reputation under all circumstances.

It also prohibits the use of terms like ‘kind’, ‘style’, and ‘type’ for products that fall under this protection. Currently, this higher level of protection is exclusive to wines and spirits.

GI is an intellectual property right. On this subject, under a free trade agreement, normally two countries include rules prescribed in the TRIPS and do not go beyond that.

Nilanshu Shekhar, founding partner at law firm KAnalysis, said Indian legislation does not differentiate between wines and spirits, and other products in terms of GI protection, and the decision to grant higher protection rests with the central government and varies based on international recognition.

India has been advocating for extended protection to other products beyond wines and spirits to prevent misuse of its labels like Basmati rice by other countries.

“The UK’s interest in securing higher-level GI protection for more products in the proposed FTA with India predominantly benefits its strong export segments of wines and spirits, dairy products etc. As FTAs are based on mutual benefits, India should negotiate firmly for the UK to offer similar elevated GI protection to Indian products to a higher range of Indian products too,” Shekhar said. He said that this approach would create a more balanced and reciprocal trade relationship, potentially opening new markets and enhancing the global standing of Indian products.

A higher level of GI protection for products like cheese will create problems for Indian companies, hence, New Delhi should not accede to the demand unless the UK is reciprocating equally in this or another department, he added.

Sharing similar views, expert on internal trade and WTO-related issues, Abhijit Das said: “If the UK is demanding a higher level of protection for its GIs, Britain must be willing to give a higher level of pro-action to our GIs as well. But, there could be some adverse consequences for cheese manufactured by Amul in India”.

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India seeks social security agreement in UK FTA

UK & India(grab)

The duo also discussed shared global challenges, including the situation in Israel and Gaza and the war between Russia and Ukraine…reports Asian Lite News

As the next round of negotiations for a free trade agreement with the UK is scheduled, India has sought inclusion of social security in the discussions, an official said Tuesday.

The social security pact, if it gets included in the discussions and becomes part of the FTA, will allow temporary Indian workers in the UK to claim social security benefits from contributions made during their period of stay.

At present temporary workers in the UK who stay beyond a year have to make contributions to social security. When they return after a brief stay there is no mechanism for them to get their contribution back or derive any benefit out of it.

Both countries have concluded 13 rounds of talks on the FTA but the closing of positions on key issues of rules of origin, tariffs on automobiles and whiskey, greater liberalisation of services trade and visa issues still remain.

The virtual sessions are still on but we are planning a full-fledged round of talks, the official added.

He said that negotiators are not working with a deadline for concluding the talks and are willing to give time for reaching a deal that is in best interest of both sides.

On intellectual property issues, agreement is within reach. The Bilateral Investment Treaty, which is being negotiated as a separate agreement and is expected to be signed along with the FTA, has also seen substantial progress.

The proposed FTA between the two countries, negotiations for which were started in January of 2022 covers 26 chapters or policy areas.  “Majority of chapters are closed or are in advanced stages of negotiations,”

The UK is the 7th biggest market for Indian exports taking in $ 11.4 billion worth of goods last financial year. In the same period imports from the UK totalled $8.4 billion.

Earlier, External Affairs Minister S Jaishankar who was on a visit to the UK met with his British counterpart David Cameron and discussed progressing a Free Trade Agreement and partnerships on defence, science and technology.

During the meeting on Monday, the two leaders reflected on the strength of the UK-India relationship, including meeting the ambition of the UK-India 2030 Roadmap, according to the UK’s Foreign, Commonwealth and Development Office.

“The Foreign Secretary and Jaishankar also discussed progressing a free trade agreement and partnerships on defence, science and technology,” it said.

The duo also discussed shared global challenges, including the situation in Israel and Gaza and the war between Russia and Ukraine.

“They discussed shared global challenges, including the concerning situation in Israel and Gaza and Russia’s illegal war in Ukraine. In the meeting, they also covered the importance of the Indo-Pacific region to global growth and prosperity,” the UK’s Foreign, Commonwealth and Development Office said in a statement.

Notably, India and the UK are negotiating a Free Trade Agreement (FTA). Talks for FTA between India and the UK started in 2022 and the 12th round of negotiations took place from August 8-31 this year.

ALSO READ-Sunak Celebrates Diwali at 10 Downing Street

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Modi, Sunak Discuss Progress in India-UK FTA

New Delhi, Sept 9 (ANI): Prime Minister Narendra Modi shares a light moment with United Kingdom PM Rishi Sunak during a bilateral meeting on the sidelines of the G20 Summit, in New Delhi on Saturday. (ANI Photo)

Rishi Sunak also congratulated Narendra Modi on Team India’s strong performance in the ongoing Cricket World Cup.

Prime Minister Narendra Modi and his UK counterpart Rishi Sunak discussed the progress on the Free Trade Agreement during their telephonic conversation on Friday.

Sunak also congratulated PM Modi on Team India’s strong performance in the ongoing Cricket World Cup.

“Turning to the friendship between the UK and India, the leaders discussed recent progress on Free Trade Agreement negotiations. They agreed on the importance of securing an ambitious deal that benefitted both sides,” the UK government said in a statement.

India and UK are negotiating a Free Trade Agreement, talks for which had begun in 2022. The 12th round of negotiations for the UK-India Free Trade Agreement (FTA) took place from August 8-31 this year.

The UK PM affirmed hope of a good performance from the English side during the Test series in India in January next year.

“The leaders discussed the ongoing Cricket World Cup being held in India. The Prime Minister congratulated Prime Minister Modi on the strong performance of the India team and said he hoped England would have more luck during their test series in India in January,” the statement added.

Notably, India is having a strong run in the ongoing Cricket World Cup and has won all seven matches it has played so far. The defending champions, England on the other hand, have had poor show, winning only one game out of the six they have played.

In the India versus England game at Lucknow, the Men in Blue registered a huge 100-run victory, after India’s pace attack rattled the English batting while defending a below-par total.

PM Modi and PM Sunak also discussed the conflict situation in the Middle East amid the ongoing Israel-Hamas war.

The two leaders condemned Hamas’s attacks on Israel, and reiterated that Hamas “did not represent” the Palestinian people.

They reflected on the need to deescalate tensions in the wider region. PM Sunak also underscored the importance of protecting innocent civilians in Gaza and ensuring aid was able to flow into the country, the statement added. (ANI)

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UK negotiators in Delhi for talks on FTA

Britain and India flag.

In December, India passed a law for enabling development of the country as an international arbitration centre…reports Asian Lite News

Trade negotiators from the UK are in India and on Monday both sides will sit together to sew up any remaining loose ends in the Free Trade Agreement (FTA) the two countries aim to sign, a senior official said.

The UK team’s visit follows India’s commerce secretary Sunil Barthwal’s visit to London last week to push the negotiations further. Both sides have so far concluded 13 rounds of talks. The official said another team from the UK is already in India for further talks on the Bilateral Investment Treaty (BIT), to be inked along with the FTA.

“Everything is at the closure level,” the official added.

The investment treaty is being negotiated as a separate agreement. Investment treaties help promote and protect investments in both countries. They sometimes give partner countries greater freedom than other international investors.

The main point of contention in negotiations is about the mechanism for the settlement of disputes. India has proposed to first utilise all local judicial remedies before initiating international arbitration. It also wants any international arbitration that happens to happen in India. In December, India passed a law for enabling development of the country as an international arbitration centre.

Apart from BIT, the rules of origin and intellectual property rights (the latter two under the FTA) were some of the issues that were proving to be contentious in the negotiations. From the Indian side, the demand for easier visas for professionals was seeing some resistance from the UK. Differences in services have been sorted out on the lines of the UK’s FTA with Australia which came into force in May.

In the services sector, the UK has demanded national treatment for its services businesses and greater freedom for its professionals to operate in India. This has been agreed to. National treatment means treating foreigners and locals equally with regard to rules and regulations. It also means equal access to opportunities for overseas operators.

The UK was interested in financial, business and professional, and transport services. It also wanted a liberalised visa regime for its business travellers. “In services, professionals moving from India to the UK or the other way round are most likely to be Indian nationals or of Indian origin, so the issues have been sorted out,” the source said.

Among the other issues, the duties on whisky and automobiles were the two most sensitive issues for India.

In the auto sector, the reduction of tariffs on imports from the UK would be calibrated in a way that its impact on local manufacturing is minimal. In the spirits trade, both countries have narrowed their positions on immediate duty cuts and speed of cuts in coming years .

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UK-India Trade Talks in Spotlight Amid Manipur Ethnic Violence

“FTA talks must be halted while this continues,” the Labour MP for Nottingham East added…reports Asian Lite News

 Indian-origin British MP Nadia Whittome has tabled an early day motion in the House of Commons calling the UK to halt its Free Trade Agreement (FTA) talks with India in the wake of the ethnic violence in Manipur.

The motion, signed by 21 other MPs, also urged the government to raise the issue of human rights violations in Manipur with the Indian government.

“While the Tories are negotiating a free trade agreement with India, minorities face persecution under BJP rule. I tabled a motion highlighting the campaign of violence against the Kuki-Zo people in Manipur,” Whittome wrote on X (formerly Twitter) recently.

“FTA talks must be halted while this continues,” the Labour MP for Nottingham East added.

The motion tabled earlier this month notes “the ongoing, grave human rights violations in Manipur, India, including acts of sexual violence, extrajudicial killings, home destruction, forced displacement, torture and ill-treatment, predominantly targeting the Kuki-Zo people, a tribal community who are largely Christian”.

Highlighting that UN experts have raised serious concerns about the slow and inadequate response by India, the motion stated that it “recognises that these human rights violations occur as part of wider attacks on religious and ethnic minorities across India, many of which public officials have been accused of aiding and abetting”.

Early day motions are submitted for debate in the House of Commons for which no day is fixed, due to which very few are debated.

However, many attract a great deal of public interest and media coverage.

Whittome’s Punjabi Sikh father emigrated to the UK from Banga, Punjab at the age of 21. Her mother is an Anglo-Indian Catholic solicitor and former member of the Labour Party.

On Tuesday, External Affairs Minister S Jaishankar said efforts are on to ensure there is adequate law-and-order enforcement in Manipur and find a way by which a sense of normalcy returns to the northeastern state.

“…I think one part of the problem in Manipur has been the destabilising impact of migrants who have come,” Jaishankar said in response to a question raised on the situation in Manipur at the Council on Foreign Relations in New York.

“But there are also tensions which obviously have a long history which precede that. And today, I think the effort is on the part of the state government and the Union government to find a way by which a sense of normalcy returns, that arms which were seized during that period are recovered, that there is an adequate law-and-order enforcement out there so that incidents of violence don’t happen,” he said.

Beginning this week, fresh protests erupted in the state after two students, who had gone missing in July were found murdered, with mobile internet services in the state snapped once again.

A team of Central Bureau of Investigation (CBI) officials is reportedly reaching Imphal today to investigate the “kidnapping and killing” of two students.

At least 175 people have been killed, 1,108 injured and 32 remain unaccounted for since the ethnic violence erupted in Manipur on May 3.

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India Mulls Direct Listing of Businesses on LSE

Chancellor Jeremy Hunt shared that India’s interest in direct listings on the LSE marks a significant step forward….reports Asian Lite News

Indian companies are considering direct listings on the London Stock Exchange (LSE), a move highlighted during talks between UK Chancellor Jeremy Hunt and Indian Finance Minister Nirmala Sitharaman. The discussions also focused on the imminent finalisation of a Free Trade Agreement (FTA) between India and UK.

Hunt, speaking at a press conference, shared that India’s interest in direct listings on the LSE marks a significant step forward. This development coincided with both countries moving closer to signing the much-anticipated FTA.

“I’m very proud of the progress we have made through the UK-India Economic and Financial Dialogue (EFD) this time. It’s a big step forward to hear India confirming that they’ll explore the London Stock Exchange as an international destination for the direct listing of Indian companies,” Hunt said.

“I see India as Asia’s Silicon Valley and the UK as Europe’s Silicon Valley, so there’s a lot we can work on together.”

He said the next step for this is a comprehensive FTA and bilateral investment treaty and “I know discussions are ongoing as to how to finalise those as soon as possible.”

Sitharaman echoed his view, but suggested that the negotiations will continue over the point of differences related to the proposed FTA.

“As you know, we agreed to have the investment negotiations (on FTA with UK) running parallel to the goods and services trade negotiations. So, we will be looking at points where there are convergences and if there are points on which we have to have further discussions, we will hold it. The keenness on both the sides is to conclude it as soon as possible,” she said.

“The intention on both the sides is to expedite the discussions so that some quick agreements can lead to finally signing the FTA.”

The announcements come within 48 hours after Prime Minister Narendra Modi and his British counterpart Rishi Sunak, in their bilateral meeting on the sidelines of the G20 Summit, agreed to “work at pace” towards signing the much-anticipated FTA.

Hunt said that there is a new pensions and insurance partnership between the two countries, along with the establishment of knowledge and expertise sharing mechanism.

Sitharaman told reporters that India and the UK “are highly encouraged” by the intensified collaboration in the area of financial services.

They also announced the launch of the “new UK-India Infrastructure Financing Bridge”.

This is a collaborative venture co-led by government think tank Niti Aayog and the City of London Corporation which is aimed at harnessing collective expertise in planning and implementing major infrastructure projects, Sitharaman informed.

Total trade between the UK and India was worth £36.6 billion in the last financial year, up over 34% year on year, with an £82 million increase in UK-Indian financial services trade over last year. EFDs are a regular way of deepening ties to grow the economies of both countries.

Investment between the UK and India so far already supports over half a million jobs across both economies, and UK businesses sold goods and services worth around £15 billion to India in 2022.

Meanwhile, other major announcements as part of the EFD, include the signing of the UK guarantee to the World Bank to unlock an additional $1 billion of green financing in India.

This will promote clean energy investment and support green growth targets, accelerating India’s climate transition and ability to meet COP26 commitments. It is hoped that it will encourage other international partners to support India and shape the world’s climate transition.

An agreement was also announced to explore new investment opportunities in areas of shared priority, including leveraging institutional capital to invest in climate adaptation and green businesses in India.

This builds on the success of the Green Growth Equity Fund, India’s first dedicated climate change fund backed by British International Investment.

During the G20 leaders’ summit, Rishi Sunak announced that the UK will provide $2 billion to the Green Climate Fund – the biggest single funding commitment the UK has made to help the world tackle climate change, which will make a significant contribution towards the UK’s pledge to spend £11.6 billion on international climate finance, cementing our global climate leadership.

It also comes after the recently announced ‘Alive with Opportunity’ campaign from the UK government, designed to showcase the deep bond between Britain and India and build on the continuous exchange of people, ideas and culture. The campaign is part of the UK’s ambitions to double trade with India by 2030.

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UK Chancellor, Indian FM Signal Imminent FTA Agreement

Sitharaman told reporters that India and the UK “are highly encouraged” by the intensified collaboration in the area of financial services…reports Asian Lite News

After his talks with Union Finance Minister Nirmala Sitharaman, visiting UK Chancellor Jeremy Hunt on Monday said that the Free Trade Agreement (FTA) between India and Britain will be finalised soon.

Addressing a press conference, Hunt said that the two countries are moving towards inking of a FTA.

Meanwhile India will also explore the possibility of direct listing of Indian companies at the London Stock Exchange (LSE), according to a joint statement issued after the conclusion of the 12th India-UK Economic and Financial Dialogue between Hunt and Sitharaman.

“The next step for this is a comprehensive FTA and bilateral investment treaty and I know discussions are ongoing as to how to finalise those as soon as possible,” Hunt said on the trade pact.

Sitharaman echoed his view, but suggested that the negotiations will continue over the point of differences related to the proposed FTA.

“As you know, we agreed to have the investment negotiations (on FTA with UK) running parallel to the goods and services trade negotiations. So, we will be looking at points where there are convergences and if there are points on which we have to have further discussions, we will hold it. The keenness on both the sides is to conclude it as soon as possible,” she said.

“The intention on both the sides is to expedite the discussions so that some quick agreements can lead to finally signing the FTA.”

The announcements come within 48 hours after Prime Minister Narendra Modi and his British counterpart Rishi Sunak, in their bilateral meeting on the sidelines of the G20 Summit, agreed to “work at pace” towards signing the much-anticipated FTA.

Commenting on Indian companies looking to list directly on the LSE, Hunt said: “We are particularly pleased to have made a big step forward with the first confirmation by India that it will explore the London Stock Exchange as an international destination for the direct listing of Indian companies.”

He added that there is a new pensions and insurance partnership between the two countries, along with the establishment of knowledge and expertise sharing mechanism.

Sitharaman told reporters that India and the UK “are highly encouraged” by the intensified collaboration in the area of financial services.

Hunt and Sitharaman also announced the launch of the “new UK-India Infrastructure Financing Bridge”.

This is a collaborative venture co-led by government think tank Niti Aayog and the City of London Corporation which is aimed at harnessing collective expertise in planning and implementing major infrastructure projects, Sitharaman informed.

ALSO READ-Sunak optimistic about FTA with India this year

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Sunak optimistic about FTA with India this year

PM stressed there was “still hard work to do” and said an agreement had to “work for both countries.”…reports Asian Lite News

In a strong indication to clinch a deal this year, UK Prime Minister Rishi Sunak said that India and the United Kingdom have made enormous progress toward signing a free-trade agreement. 

Rishi Sunak said, “Both Modi Ji and I are keen to see a comprehensive and ambitious trade deal concluded between our two countries. Both of us think that there is a good deal to be done.”

The premier stressed there was “still hard work to do” and said an agreement had to “work for both countries.”

“I think there is an enormous opportunity for both India and the UK to strengthen our economic cooperation which will bring real benefits to our citizens in both countries,” the PM added.

The two leaders (PM Modi and Rishi Sunak) noted with satisfaction the progress in diverse areas of bilateral cooperation as per the India-UK Comprehensive Strategic Partnership as well as the Roadmap 2030, particularly in economy, defense and security, technology, green technology and climate change, health, and mobility sectors.

Both leaders also exchanged views on international and regional issues of importance and mutual They also reviewed the progress of Free Trade Agreement negotiations and expressed hope that the remaining issues could be addressed at the earliest so that a balanced, mutually beneficial, and forward-looking Free Trade Agreement is concluded soon, the statement read.

In August, Finance Minister Nirmala Sitharaman indicated that India was close to a “final call” on signing the FTA with the UK. Talks have been ongoing since 2021 with 13 rounds of talks thus far. Bilateral trade between the two countries hit USD 20.36 billion in 2022-23.

“Prime Minister Modi invited PM Sunak for a bilateral visit at an early, mutually convenient date for a more detailed discussion. Prime Minister Sunak accepted the invitation and congratulated PM Modi for a successful G20 Summit,” the release added.

Earlier, Sunak said the UK and India are two nations with one ambition, an ambition rooted in shared values, the connection between people.

“Two nations, one ambition. An ambition rooted in our shared values, the connection between our people and – of course – our passion for cricket,” the UK PM tweeted.

Narendra Modi held a bilateral meeting with Sunak on the sidelines of the G20 Summit being held in the national capital under India’s presidency.

The meeting between the two leaders was held at the Bharat Mandapam in Pragati Maidan, the venue of the Summit.

The UK Prime Minister’s office on Saturday tweeted: “PM @RishiSunak and PM @narendramodi met today at the #G20 summit. They discussed the close and growing ties between the UK and India and had a productive conversation on work towards delivering the UK-India FTA.”

Talks between the two leaders followed their meeting held on the sidelines of the G7 Summit in Hiroshima in May this year in which they had discussed the India-UK free trade agreement, innovation, and science along with ways to strengthen the Comprehensive Strategic Partnership between the two countries.

The two countries are negotiating a Free Trade Agreement, talks for which had begun in 2022. The 12th round of negotiations for the UK-India Free Trade Agreement (FTA) took place from August 8 to 31 this year.

In August this year, Union Commerce and Industry Minister Piyush Goyal and the UK’s Secretary of State for Trade Kemi Badenoch took stock of the FTA and agreed on ways to make progress in the negotiations. The 13th round of negotiations is due to take place in September.

Earlier today, PM Modi and Rishi Sunak participated in Session 1 on ‘One Earth’ during the G20 Summit. Sunak said that the world is looking to G20 to provide leadership and that the leaders are meeting at a time of enormous challenges. He expressed confidence that the leaders will together be able to address the challenges.

In a post shared on X, Sunak stated, “15 years ago, #G20 leaders came together for the first time to restore global growth after the financial crisis. We meet at a time of enormous challenges – the world is looking to the G20 once again to provide leadership. Together I believe we can address these challenges.”

Earlier, PM Modi welcomed world leaders, including US President Joe Biden, Canadian Prime Minister Justin Trudeau, UK PM Rishi Sunak, German Chancellor Olaf Scholz and others as they arrived to attend the Summit at the Bharat Mandapam venue.

Rishi Sunak and PM Modi warmly greeted each other with Namaste and shook hands. The two leaders also hugged each other as they posed for cameras.

Sunak, accompanied by wife Akshata Murty had arrived in Delhi on Friday. This is Rishi Sunak’s first visit to India after he assumed the office of Prime Minister of the UK in October last year.

India and the UK are bound by strong ties of history and culture, according to the Ministry of External Affairs. India’s multifaceted bilateral relationship with the UK intensified with its upgradation to a Strategic Partnership in 2004. (ANI)

ALSO READ-13th round of UK, India FTA talks from Sep 4

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13th round of UK, India FTA talks from Sep 4

Hiroshima, May 20 (ANI): UK Prime Minister Rishi Sunak with Indian Prime Minister Narendra Modi during the G7 Summit in Hiroshima, Japan on Saturday. (ANI Photo)

Before the 12th round, the sides had concluded talks on 19 of the total 26 chapters in the FTA…reports Asian Lite News

Senior officials of India and the UK will start the 13th round of negotiations for the proposed free trade agreement from September 4, an official said on Thursday.

The two sides concluded the 12th round of negotiations on August 31.

India’s Commerce and Industry Minister Piyush Goyal has recently stated that the negotiations between India and the UK for the proposed agreement are progressing and both countries are committed to concluding the talks as early as possible.

Business and Trade Secretary Kemi Badenoch was here recently to review the progress of talks. She also held bilateral meetings with Goyal and Finance Minister Nirmala Sitharaman.

Before the 12th round, the sides had concluded talks on 19 of the total 26 chapters in the FTA. Investment is being negotiated as a separate agreement (bilateral investment treaty) between India and the UK.

The bilateral trade between countries increased to $20.36 billion in 2022-23 from $17.5 billion in 2021-22.

‘More opening up is required from India’

Meanwhile, Badenoch has said that India will have to do “more things” to match the UK’s far more open economy as they negotiate a free trade agreement (FTA).

Badenoch, who was in India for both a G20 trade and investment summit in Jaipur and FTA talks, said the deal will set a “precedence” due to its unique nature.“The UK has a relatively open economy compared to India. So of course, there will be more things that require movements on the Indian side.. if it was going to get full equivalence within the UK. I’m here to make sure that whatever deal we have, does not take anything away from the opportunities that are currently existing,” Badenoch said.

While both countries have refrained from announcing a deadline after missing an ambitious Diwali target date last year, the union commerce ministry earlier this month said officials are going to continue negotiating till the end of August which will be followed by stock-taking at a “higher level”.

Badenoch said India and the UK have closed most of the deal’s chapters.

“But as is with any kind of negotiating, the last bit is the toughest bit… We need to make sure that when the deal is done, it is something that is mutually beneficial to both India and to the UK,” Badenoch stated.

Both countries are set to take up contentious parts of the agreement such Intellectual property rights (IPR), rules of origin and investment protection in August.

Talks on IPR are crucial, as India is the world’s largest provider of generic drugs, accounting for a fifth of global supply, including to the UK’s National Health Service. Generics make up 70-80% of the domestic retail market. In contrast, the UK is a world leader in life science innovation and wants strong IPR protection. On the Indian demand to allow more skilled Indians to temporarily live and work in the UK, the British trade minister said: “For work, Indian visas are a third of the visas that the UK grants. Also a third of student visas go to India. And a third of visitor visas go to India.” “So what we’re not going to do is just create a sort of a blanket opener. What we’re doing is looking at what your requests for visas are: can we accommodate them? And what in exchange will we be getting?”

On negotiations on a bilateral investment treaty – another contentious area — Badenoch said the one negotiated in the 90s has now expired. But “people who started things under it are still covered” and the new BIT would be about “what happens to the new entrants or the new businesses who are coming in”.

“She (Sitharaman) gave me a little bit more context as to some of the issues that have occurred not just with the UK but what they’re trying to prevent…. actually the approach we take is we look at the problem that needs resolution, and then we work to solve that problem, rather than working to copy-and-paste exactly what we had before, which isn’t going to be possible,” she added.

On the dysfunctional World Trade Organization appellate body, Badenoch said that smaller countries are the ones which are most at risk from the absence of a proper dispute settlement mechanism. “That is one of the reasons why it is the number one agenda item for the (WTO) ministerial conference that will be taking place in the UAE in February.”

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