India-UK FTA negotiations: Broad consensus reached on most issues, barring three

India and the United Kingdom have reached an agreement on major issues regarding the free trade agreement, barring three provisions. A broad consensus has also been reached on goods trade in automobiles and whiskey between the two countries and the trade pact could be signed before the end of the current year.

According to official sources, three major issues including rules of origin, investment treaty, and intellectual property rights remain to be negotiated, but broad consensus on most other issues has been reached.

Investment, however, is being discussed separately as part of the bilateral investment treaty. These negotiations are being led by the Department of Economic Affairs in the Union finance ministry, said the source, adding that these would be concluded along with the FTA.

“We have closed 19 of the 26 chapters. We are very close to completing the deal and we will try to complete is as soon as possible. It is likely before the year end,” said a senior official.   He however cautioned, that “nothing is agreed upon until everything is agreed” in trade talks.

An in-principle agreement on the rules of origin has also been reached and only the modalities have to be finalised now, the source added. Both the countries are in discussions over product-specific rules, value addition, change in chapter heading and certification.

Further negotiations on the trade deal may take place on the sidelines of the G20 Leaders’ Summit in September in New Delhi.  

Union Minister for Commerce and Industry Piyush Goyal had visited the UK on July 10 and 11 this year as part of the 11th round of the UK-India FTA negotiations. “Technical discussions were held across nine policy areas over 42 separate sessions.  

They included detailed draft treaty text discussions in these policy areas,” said a recent statement by the commerce and industry ministry. The two countries concluded the 11th round of talks on July 18 for which commerce and industry secretary Sunil Barthwal had visited the UK.  

Bilateral trade increased to $ 20.36 billion in 2022-23 from $ 17.5 billion in 2021-22.