New Delhi: After an eight-month hiatus, India and the UK have reignited negotiations for a comprehensive free trade agreement (FTA). The renewed talks aim to significantly boost bilateral trade, targeting a threefold increase in merchandise exchange within the next decade. This ambitious goal requires navigating complex tariff and non-tariff barriers while addressing the sensitivities of both nations.
Commerce Minister Piyush Goyal and UK Business and Trade Secretary Jonathan Reynolds met in New Delhi, marking the official resumption of negotiations. A joint statement emphasized the potential for the FTA to unlock significant opportunities for businesses and consumers in both countries, building upon existing strong bilateral ties.
“The strengthening of the trading relationship between our two countries has the potential to unlock opportunities for business and consumers across both our nations and build further on our already deep ties,” the two countries said in a joint statement after the ministerial meeting in New Delhi.
Goyal expressed optimism, stating that the FTA could catapult bilateral merchandise trade from the current 20 billion dollars to 60 billion dollars or even 80 billion dollars over the next 10 years. He highlighted the “huge opportunities” this would present for businesses and individuals in both nations. The two ministers instructed negotiators to work collaboratively to resolve outstanding issues and ensure a fair and equitable agreement.
The previous standstill in negotiations, following the 14th round of talks, was attributed to UK elections and a subsequent change in government. Key sticking points included India’s tariffs on automobiles and Scotch whisky and British concerns about immigration.
However, both Goyal and Reynolds clarified that the FTA would not encompass immigration policies. While acknowledging that tariffs on specific items remain subject to negotiation, both ministers emphasised the distinction between immigration and business mobility. They agreed to streamline visa processes for business purposes to foster increased trade and investment.
Goyal categorically stated that India has never linked immigration to FTA negotiations in the past. He stressed the importance of distinguishing business mobility, a key UK ask, from broader immigration policies.
Reynolds echoed this sentiment, highlighting the UK’s interest in facilitating business travel from India but emphasising that this is separate from overall immigration discussions. “We welcome the huge and important relationship we have with people from India coming to the UK, where that’s the study, where that is to be part of businesses. And, obviously, business mobility is a separate issue to immigration,” Reynolds said.
