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Clamour against UK’s FTA negotiator with India

India accounts for about 20 per cent of the world’s supply of generic medicines, 62 per cent of the world’s vaccines and 80 per cent of the anti-HIV medicines used across Africa…reports Asian Lite News

Over 200 health, development and human rights groups on Sunday sought the resignation of the UK’s chief negotiator in the India-UK Free Trade Agreement talks, objecting to his former pharmaceutical industry ties that they claim could undermine India’s capacity to produce inexpensive generic drugs.

The groups, from India and nearly 40 other countries, said the appointment of the current chief negotiator, Harjinder Kang, who had previously worked with a pharmaceutical company for nearly three decades, “runs counter to the need for impartiality and independence”. The groups have, in a joint letter to UK trade secretary Kemi Badenoch, also expressed concern about a leaked chapter from the proposed FTA that they said appeared to represent “a wish list” of the pharmaceutical industry.

The proposals include closing the right to challenge purportedly unjustified patents on medicines before they are granted, extending monopoly patents beyond 20 years and watering down transparency on the status of patent applications.

India accounts for about 20 per cent of the world’s supply of generic medicines, 62 per cent of the world’s vaccines and 80 per cent of the anti-HIV medicines used across Africa. The proposed changes to patent rules can affect access to medicines in developing countries and the world at large, the groups said in their letter, also sent to India’s trade and commerce minister Piyush Goyal.

“The measures which the UK is now trying to force through would damage India’s generic medicines industry and make essential drugs harder to access in the UK and globally,” said Tim Bierley, pharma campaigns manager with Global Justice Now, a UK-based non-government agency.

The groups said India’s current patent rules allow for a balance between commercial interests and public health needs while fully adhering to the World Trade Organisation’s rules. India has developed an ecosystem of reserving patents for genuinely new compounds while ensuring timely generic competition on which global health relies, they said.

K.M. Gopakumar, a lawyer and researcher with the Third World Network, a platform tracking global trade and health issues, said that if the UK succeeded in imposing its intellectual property demands, India’s generic drug manufacturing capacity “will be hamstrung”.

The demand for the resignation follows earlier opposition to any inclusion of strict intellectual property provisions in the FTA. In December, 35 British and Indian health organisations had cautioned that the UK National Health Service drug prices were under threat from the FTA. Generic competition, primarily from India, has helped slash the prices of standard anti-HIV drugs by 99 per cent, from more than $10,000 in the year 2000 to less than $100 today, enabling a scale-up of global treatment to cover over 28 million people. Leading global health organisations, including the Global Fund and Unicef, too rely heavily on Indian generic drugs, the groups said.

The signatories to the letter include the People’s Health Movement, Third World Network, Knowledge Ecology International, Health Global Access Project, and health and patients’ rights groups from Asia, Africa, South America, Canada, the UK and the US.

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‘India UK FTA underpinned by mutual trust’

Reflecting on the FTA between the two countries, Ellis asked “We have to step back and think that why do we want to do this deal?” “There are clear economic benefits to the deal…reports Asian Lite News

It was in 2022 Dec India and United Kingdom concluded the sixth round of FTA talks to deepen economic and strategic relationship between two countries. Even talks wrapped up round six of negotiations for a bilateral free trade agreement (FTA), Britain’s High Commissioner Alex Ellis highlighted that after covering a lot of ground now the question is down to not just the technical details but political will on both sides to push for an early conclusion of the deal.
In the latest episode ‘Podcast with Smita Prakash’, the British High Commissioner underlined the benefits of the India-UK free trade deal, which he says is underpinned by the mutual trust between the two countries. “We are getting towards the end of this negotiation I would say. It’s a long ascent up to any mountain, then you go through the valley for a long time, then you go up to the base camp, and then you do a short sharp ascent. That’s what we are trying to do. Both countries want to do the deal and that’s a big change,” he said. in response to a question on the FTA.

Earlier the FTA, which aims to double bilateral trade by the year 2030 was expected to conclude by Diwali last year but the deal did not go through after it ran into problems. Now a seventh round of negotiations for the FTA is expected to resume in the UK in the next few weeks. Britain’s new Prime Minister Rishi Sunak, the country’s first leader of Indian descent had earlier conveyed his hope of finalising the trade agreement during a call with his Indian counterpart Narendra Modi.
The UK has signed trade deals agreements with 71 counties since its exit from the European Union in the year 2020.

“It’s not a coincidence that we have done with Australia, again close partners with India. Both countries are also talking to Canada as well. We are going to start some negotiations with some Gulf countries as well,” the UK envoy to India said. The British High Commissioner explained that the trade negotiations between India and the UK will centre around how each side is willing to lower the traffic on some goods.

“How much openness can there be on the services on the Indian side? Pretty closed market. Can be opened a little bit more. Because it will be an opportunity for both India and UK,” the British envoy said.
Ellis said that India will look for more opportunities for temporary mobility of workers and other issues around the investigation protection. “But we can see what those issues are. The question is down to not just technical details but political will. A lot of work is being done. We have actually closed half the chapters and we will close some more soon,” the UK envoy said. Responding to a question on student visas, the High Commissioner said the UK-India FTA will deal with the issue of temporary mobility of workers. He noted that India already gets a significant portion about 40 per cent of all skilled worker visas that the UK issues. “Students visas are a separate issue outside of the Free Trade Agreement,” he added.

Reflecting on the FTA between the two countries, Ellis asked “We have to step back and think that why do we want to do this deal?” “There are clear economic benefits to the deal. Our work shows that we published at the beginning of last year as we launched the negotiations, some figures about how much our GDP would benefit and that’s also true for India as well,” the UK High Commissioner to India said.
Along with the economic benefit, he said the FTA will also benefit the flow of talent and ideas between the two countries. The UK envoy also spoke about the strategic benefits to work towards maintaining a free and open Indo-Pacific area pointing out that India is one of the dynamic, fast-growing economies at the heart of the Indo-Pacific.

The UK government believes that tilting towards the Indo-Pacific will also help diversify its trade, make its supply chains more resilient and make the UK less vulnerable to political and economic shocks from around the globe. An FTA with India, says the UK will also cement its position as a leader among a network of countries committed to free trade, whilst strengthening like-minded democracies who are committed to ensuring mutual prosperity.

“Both (India and UK) want to increase trust between the two countries. India sees a big opportunity in becoming an alternative supplier to China in some areas and high-end manufacturing for example,” he said. A case in point the envoy pointed is the trust between the two countries including the joint UK-India joint production of the Covishield vaccine.
Covishield has been jointly developed by AstraZeneca and Oxford University and manufactured by the Serum Institute of India (SII). (ANI)

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FTA with India to boost UK cricket exporters

An FTA could see these taxes cut or even removed entirely, along with a range of duties on other exports that would help UK firms expand into an economy due to become the world’s third largest by 2050…reports Asian Lite News

Cricket bat and pad exports from the UK to India could be in line for a big boost next season thanks to the Free Trade Agreement (FTA) between the two countries.

The latest round of negotiations on the deal, kicked off by the Trade Secretary in person, wrapped up in New Delhi last week.

The agreement seeks to cut red tape and tariffs for businesses, which could include reducing the current 20% tariff on cricket bats and pads made in the UK.

Any reduction could benefit iconic British brands like Gunn & Moore, whose bats are used by England captain Ben Stokes and have been trading with India for more than a century.

The Nottingham-based firm, which uses English willow in its bats and exports both wooden bat ‘clefts’ and fully made bats to India, welcomed the negotiations, saying cuts to tariffs would help its business.

UK exports to India of English willow, which is bought by Indian companies to make bats used by players at all levels of the game, were worth over £6 million annually between 2018 and 2020, and are currently subject to a tariff of 10%.

An FTA could see these taxes cut or even removed entirely, along with a range of duties on other exports that would help UK firms expand into an economy due to become the world’s third largest by 2050.

The latest round of negotiations completed a week ahead of Indian Premier League (IPL) auction, which saw its teams bid for players like Stokes and some of his England ICC T20 Men’s World Cup-winning team-mates to represent them in the season ahead.

Minister for Exports Andrew Bowie said, “English cricket is rightly proud of its world champion players – but also of our brilliant exports like the willow that goes to make the bats hitting boundaries across the world. We look forward to concluding a modern ambitious trade deal with India that helps UK exporters of all types hit their sales targets and builds on the increasing amount of British goods and services sold to India, worth £12 billion in the 12 months to the end of June.”

Gunn & Moore Sales Director Richard Lowy said, “Gunn & Moore Cricket are fully supportive of a UK-India trade deal and look forward to that having a very positive outcome for both countries.”

England and Wales Cricket Board Interim CEO Clare Connor said, “England and India have long shared a passion for cricket that extends beyond the boundaries of play. We are fortunate to have a game that can not only inspire millions of people across both countries but which creates opportunities to compete and learn from one another in major tournaments such as the IPL and bring us all closer together.”

Board of Control for Cricket in India Honorary Secretary Jay Shah said, “Since 1932, when India played its first-ever Test against England at Lord’s, India-UK cricketing bonds have only grown stronger with each passing year. While India enjoys tremendous support in England, the English players have been the crowd favourites in India and are certainly on the must-buy lists of IPL franchises.”

The current UK – India trading relationship is already worth more than £29 billion and UK-Indian investments support nearly half a million jobs across both countries.

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Bilateral investment treaty key to FTA talks, says McCole

He argued that it would also be in India’s interest to put such a treaty in place…reports Asian Lite News

With 14 of the 26 chapters in the India-UK free trade agreement (FTA) already finalised, the next round of talks will focus on three chapters and especially the prospect of a bilateral investment treaty, according to Kevin McCole, managing director of the UK India Business Council (UKIBC) — a non-profit body that works with governments and firms to promote trade and business ties between the two countries.

McCole said, “[UK investors] will be considering what protection they have in India as investors or what legal recourse is there? If there’s no bilateral investment treaty, then that becomes a factor in the decision-making that happens at the board level.”

He argued that it would also be in India’s interest to put such a treaty in place.

The India-UK FTA, for which five rounds of talks have taken place, was earlier slated to be concluded by Diwali this year. Reports indicate that the Indian government is now looking to finalise the agreement by March 2023.

Without confirming whether the UK is following this new timeline, McCole said London “would not want to compromise quality for speed”.

McCole has previously written about the importance of former UK PM Boris Johnson and Prime Minister Narendra Modi being “long-standing friends”. He was asked how this compares to Modi’s relationship with the current UK prime minister, Rishi Sunak.

“There was a real chemistry between Mr Modi and Mr Johnson which would have played an important role in the end-game,” said McCole.

“The personal relationship (between Modi and Sunak) is at a nascent stage but the relationship between the two countries isn’t. There’s also the 2030 roadmap that both governments remain committed to,” he said, adding that Sunak’s “family background” helps in understanding a country and economy like India.

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Sunak reiterates UK’s commitment to FTA with India

He also criticized the human rights abuses taking place in China while putting forward his stance on foreign policy…reports Asian Lite News

Delivering his first major address on UK Foreign Policy, Prime Minister Rishi Sunak on Monday emphasized the importance of a Free Trade Agreement (FTA) with India that aims to strengthen the domestic economy.

This comes as India and UK are engaged in FTA negotiations, which began in January this year, aiming to advance trade and investment relations between them. Both countries currently have a multi-dimensional strategic partnership and actively engage in bilateral trade. “By 2050, the Indo-Pacific will deliver over half of global growth…compared with just a quarter from Europe and North America combined. That’s why we’re joining the Trans-Pacific trade deal, the CPTPP, delivering a new FTA with India, and pursuing one with Indonesia,” Sunak said in his address at the Lord Mayor’s Banquet at London’s Guildhall.

On the world’s second-largest economy, Sunak asserted that the “golden era” between Britain and China is “now over” and that it is time to evolve the approach towards China as the country is posing a systemic challenge to UK’s values and interest with its authoritarian rule.
He also criticized the human rights abuses taking place in China while putting forward his stance on foreign policy.

“Let’s be clear, the so-called ‘golden era’ is over, along with the naive idea that trade would lead to social and political reform. We recognise China poses a systemic challenge to our values and interests, a challenge that grows more acute as it moves towards even greater authoritarianism,” the UK PM said in his address.

In his speech, Sunak also extended support to Ukraine saying that the UK stands with the war-ravaged country. He said that Britain is also reinvigorating its European relationships to tackle challenges like security and tackling migration.

The UK Prime Minister also expressed concern over the ongoing protests in China against COVID lockdowns. Highlighted the recent arrest of the BBC reporter in China, Sunak said that instead of listening to people’s concerns, the Chinese government “has chosen to crack down further”.

Thousands of protesters took to the streets of Shanghai, where people were being bundled into police cars. Students have also demonstrated at universities in Beijing and Nanjing. (ANI)

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India-UK FTA talks to restart next month: Goyal

The Commerce Minister added that industry support is required for the agreement, which should be a balanced one for India…reports Asian Lite News

The government said on Tuesday that the negotiations on the proposed free trade agreement (FTA) between India and the UK are very much on track and are expected to restart next month.

Union Commerce Minister Piyush Goyal, while speaking on the sidelines of a steel industry event, said that the India-UK FTA is a high-priority issue for both the nations and negotiations on it are expected to take place next month.

Goyal said he is already in touch with his UK counterpart for the next round of talks on the trade pact.

He added that while things on the agreement were progressing quite fast, due to the political developments in the UK, there was “little bit of a blip” (after Boris Johson and Liz Truss resigned in quick succession as Prime Ministers and Rishi Sunak took charge last month), “but now there is a stable government (in the UK) and efforts are on to restart the negotiations next month”.

The Commerce Minister added that industry support is required for the agreement, which should be a balanced one for India.

He also said that there cannot be strict deadlines for wrapping up such sensitive negotiations, as thorough discussions are needed to safeguard the country’s trade interests.

Both India and the UK had begun discussions on the FTA in January this year, and former British Prime Minister Boris Johnson had expressed optimism that these would be concluded by Diwali (October 24). However, due to the political crisis in that country, things got delayed.

Meanwhile, the India-Australia Economic Cooperation and Trade Agreement, which would give a big boost to especially textiles, gems and jewellery and pharmaceuticals sectors, is expected to create new 10 lakh jobs, said Union commerce minister Piyush Goyal.

“Since the labour-intensive sectors will be benefitted, it is expected to create additional employment of at least 10 lakhs jobs in India, create ample opportunities for investment, promotion of start-ups. Similarly, it would provide enhanced job opportunities for Indians in Australia and increased remittance flows to India,” Goyal said.

The Australian parliament has announced the passing of the free trade agreement (FTA) with India, Goyal on Tuesday said adding that the initial size of bilateral trade between the two countries can go up to around USD 45-50 billion in the next five-to-six years.

Addressing a press conference on the trade deal following the approval of the Agreement by the Australian Parliament, Goyal said that duties on 100 per cent tariff lines would be eliminated by Australia under this deal.

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Next round of India-UK FTA talks in coming months

India and the EU on June 17 this year formally resumed negotiations on the proposed agreement, after a gap of over eight years…reports Asian Lite News

The next round of talks between India and the UK on a proposed free trade agreement, which aims at boosting trade and investments between the two regions, is proposed to be held in the coming months, India’s commerce ministry said on Tuesday.

India and Britain launched negotiations for the free-trade agreement (FTA) in January with an aim to conclude talks by Diwali (October 24), 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.

According to sources, the ministry has now fixed an internal deadline to conclude the talks on the trade agreement by March next year.

Reduction or elimination of customs duty under the pact would help Indian labour intensive sectors like textiles, leather, and gems and jewellery to boost exports in the UK market. The UK is seeking duty concessions in areas like Scotch whiskey and automobiles.

According to a presentation made by Additional Secretary in the Department of Commerce L Satya Srinivas, five rounds of talks are already completed between the officials of the two countries till July.

The bilateral trade between the two countries increased to $17.5 billion in 2021-22 compared to $13.2 billion in 2020-21. India’s exports stood at $10.5 billion in 2021-22, while imports were $7 billion.

Similarly, the third round of talks between India and the European Union (EU) on the proposed free trade agreement, investment protection agreement and an agreement on Geographical Indications, is scheduled from November 28 to December 9.

India and the EU on June 17 this year formally resumed negotiations on the proposed agreement, after a gap of over eight years.

The presentation showed that by the end of this year or early next year, stock taking meeting would be held at the commerce secretary level to review the progress of the third round and to decide the way forward.

The four-day fifth round of talks on India-Canada early progress trade agreement is going on from November 14.

Also, the Gulf Cooperation Council (GCC) has expressed its interest in the resumption of negotiations for a trade pact.

At present, India and GCC are negotiating the terms of references for that.

Further, the additional secretary said that the department of commerce is the nodal department for Trade and Investment Working Group (TIWG) under G20 sherpa track.

During India’s G20 Presidency, as part of TIWG, meetings will be organised in Mumbai, Bengaluru, Kevadia and Jaipur.

First meeting will be in Mumbai from March 28-30 next year. There will be a trade and investment ministerial meet in Jaipur.

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India-UK FTA will tighten screws on generic drugs

MSF pointed out that under the proposals from the U.K., even treatment providers could be subjected to legal actions for prescribing generic medicines for which India is one of the largest manufacturing hubs…reports Asian Lite News

The proposals on intellectual property (IP) rights in the draft India-United Kingdom Free Trade Agreement (FTA) will hurt the global supply of generic medicines, Doctors Without Borders (Médecins Sans Frontières or MSF) warned on Wednesday.

In a press note, the international organisation said low medicine prices help save lives in vulnerable communities across the world but the intellectual property chapter of the India-U.K. FTA contains “harmful IP provisions”. The IP-related chapter, leaked on October 31, showed that the controversial provisions tabled by the U.K. to “tighten the screws on producing, supplying and exporting affordable generic medicines from India”.

“Given the disastrous consequences, this leaked IP chapter could have on the global supply of generic medicines, the U.K. government should withdraw it completely. India should stay vigilant and not allow barriers to affordable medicines to be written into FTA negotiations,” Leena Menghaney, South Asia head of MSF’s Access Campaign, said.

In a “Fact Sheet”, MSF has argued that the demand for “harmonisation” of Indian patent law with the U.K.’s laws will lead to dilution of important provisions in the Indian patent system that are necessary for manufacturing generic medicines and vaccines.

“Article E.10 of the leaked IP chapter stipulates that both parties “shall not” make patent opposition proceedings available BEFORE the grant of a patent. In effect, this provision applies only to India as the U.K. does not have a pre-grant opposition system – this goes directly against the current Indian patent law, which allows patent opposition proceedings both before and after the grant of a patent,” the MSF said in its observations on the IP provisions.

MSF pointed out that under the proposals from the U.K., even treatment providers could be subjected to legal actions for prescribing generic medicines for which India is one of the largest manufacturing hubs. MSF said that the IP provisions brought up by the U.K. opened up possibilities for “excessive enforcement” that are likely to create difficulties for both Indian pharmaceutical companies as well as the legal set-up.

MSF highlighted that another problematic provision is Article J.11 of the leaked IP chapter. Under this provision, Customs officials could block legitimate medicines from leaving India for other developing countries if a multinational pharmaceutical corporation was to claim that their patents were being infringed upon by the Indian product. “Furthermore, Article J.5 and J.7 prescribe how courts should adjudicate IP disputes, which could impact [Indian] judicial discretion,” MSF said.

A British government spokesperson said they would not comment on the “alleged leaks” and will only sign “a deal that is fair, reciprocal, and ultimately in the best interests of the British people and the economy”.

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Will sign only fair, reciprocal FTA with India, says Hands

India and the UK are said to have covered significant ground in three rounds of trade talks earlier this year, but critics have said this amounted to plucking the low hanging fruits first…reports Asian Lite News

The UK has completed most of the sections of the much-awaited free trade agreement (FTA) with India, but would sign the deal only once “it is happy that the pact is fair and reciprocal”, said British Trade Department Minister Greg Hands.

“We have already closed the majority of chapters and look forward to the next round of talks shortly. We are working towards the best deal for both sides and won’t sign until we have a deal that is fair, reciprocal and ultimately in the best interests of the British people and the UK economy,’’ Hands told Parliament. The government’s deadline of a deal by Diwali, however, remained unfulfilled, largely due to the sudden resignation by PM Liz Truss.

However, the government said duty on liquor was a major sticking point. If that is so, observers say the deal was still stuck where it was six months ago when the UK was pressurising India to cut its tariff on alcoholic beverages and processed food while resisting New Delhi’s demand that more Indian professionals should be allowed to live and work in the UK.

India and the UK are said to have covered significant ground in three rounds of trade talks earlier this year, but critics have said this amounted to plucking the low hanging fruits first. The UK has so far agreed to reduce duty on Indian rice and textile goods and New Delhi is set to reciprocate by allowing zero duty entry for UK’s apples, medical devices and machinery.

The FTA is said to have the potential of doubling bilateral trade to about $100 billion by 2030. The new UK PM, Rishi Sunak, on Wednesday said he was confident this government would rise to the challenge and deliver for the whole of UK. In case India and the UK are unable to agree on the tougher parts, they could ink an interim agreement pact that will cover 65 per cent of goods and up to 40 per cent of services, with the coverage in goods expected to go up to 90 per cent in the full agreement.

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‘Intensive talks’ under way with India but no Diwali deal

The British side of the talks is being led by. Badenoch and her team at the Department for International Trade ( DIT )…reports Asian Lite News

India and Britain are engaged in “intensive negotiations” to conclude a trade deal, a foreign affairs spokesperson for the British government said on Wednesday.

An India-UK trade deal is not expected by Diwali on Monday — a deadline that the sides were working towards.

“We are currently not expecting to have a final deal by the end of Diwali, which the International Trade Secretary [Kemi Badenoch] set out herself last week,” the spokesperson said at a briefing for the foreign press on Wednesday.

Comments two weeks ago by British Home Secretary Suella Braverman that she had “some reservations” about the trade deal as Indians were the largest group of visa overstayers in the U.K. (mobility of professionals is usually a core topic for India across trade deals) had not gone down well with India.

The British side of the talks is being led by. Badenoch and her team at the Department for International Trade ( DIT ). However, British Prime Minister Liz Truss “undermined the negotiations by regularly messaging” Commerce Minister Piyush Goyal, claiming that this hurry to get the deal done by Diwali had given the Indian side an advantage.

Nevertheless, the British government said on Wednesday that the countries were still on track for a good deal.

“But we still fully expect to get a good and comprehensive free trade deal with India that fully benefits both sides,” the spokesperson said on Wednesday.

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