Negotiations for a free trade agreement (FTA) between India and the UK are back on in London after delays, with talks stalled for months, their trade ministers have both recently indicated.
The trade talks have resumed in London after months of inactivity and uncertainty, with the UK and India hoping to expedite a long-awaited free trade agreement they have been waiting to finalize since January 2022.
The FTA is particularly important for the UK, since it provides a chance to modify its existing global trade patterns in the BrExit reality
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Key Sticking Points and Progress Made
While there is a desire on both sides to sign a deal, a number of key issues remain open. These issues include market access, tariff reduction, and the movement of professionals – which are the most contentious issues. India wants to establish easier visa access for its skilled workers, especially related to IT and healthcare services. The UK is seeking a greater access to Indian markets for its premium products, automobiles, and financial services sectors.
Improving the UK-India Trade Agreement talks are worth focusing on for a moment. Negotiators have reported “good progress” in the last couple rounds of talks. Both governments have reduced political emphasis, reduced political priorities, and are now firmly focused on identifying mutual benefit areas to accelerate the agreement.
Strategic and Economic Significance
If India and the UK complete a strong trade agreement, it would enhance economic links, and it would further enhance strategic links between the two democracies. The governments of both countries are looking to position themselves as global trading hubs in the Indo-Pacific and European regions respectively. A strengthened trade relationship would support sharing ambition in areas such as clean energy, digital trade, and defence.
As for the UK, this free trade agreement, or FTA, presents an opportunity to showcase its global ambition post Brexit and boost its presence in one of the fastest growing major economies in the world. click here for the source
