NEW DELHI: Commerce and industry minister Piyush Goyal may travel to London again later this week before he returns to India from the ongoing three-nation foreign tour, to iron out a few irritants in the free trade agreement (FTA) with the UK, according to sources. The minister might formally declare the much-delayed pact ready for signing along with the his UK counterpart, as he visits the island nation which he left for Norway as late as Tuesday.
According to sources, last-minute differences over the wording of some of the provisions of the trade and investment agreements of the FTA led to postponement of announcement about conclusion of the negotiations.
The officials who participated in the negotiations on the FTA, and its components like Bilateral Investment Treaty (BIT) and the social security pact (Double Contribution Convention Agreement) are having a re-look at the “technical issues” that have cropped up, the sources said, without elaborating. The plan is to get these out of the way before Goyal leaves Europe for India, they added.
Earlier, the announcements on finalisation of the agreements was to come through at a scheduled press conference in London on Tuesday but the last-minute issues led to its cancellation.
Goyal arrived in the UK on Monday for two days and held extensive discussions with his counterparts. On the first day he met UK Secretary of State for Trade and Business Jonathan Reynolds to advance FTA negotiations. On Tuesday he met Chancellor of Exchequer Rachel Reeves. The UK’s treasury department and India’s Ministry of Finance are holding negotiations on the investment treaty.
After the UK, the minister is visiting Norway and on Thursday he will be in Brussels to meet the leadership of the European Union. His return to the UK is expected on Friday or Saturday and announcement on the signing of the agreements could follow after all issues have been dealt with.
It is understood that technical issues have cropped up in some of the minor provisions of the BIT and FTA, while all issues related to tariff concessions in goods and professional visa issues in services have been settled.
Both India and the UK have been engaged in discussions on the FTA since January 2022.
Since the launch of India-UK FTA talks were launched 14 rounds of formal negotiations have taken place. The talks were suspended in May of 2024 as elections in both countries intervened. After elections brought the Labour Party to power, Secretary of State for the Department for Business and Trade of the United Kingdom Jonathan Reynolds visited New Delhi in March to resume discussions.
In FTA while the UK is asking lower duties on automobiles, electric vehicles, whiskey and national treatment for its services sector in the FTA. India is seeking greater access to its labour incentive manufacturing sector to the UK market apart from greater flexibility in grant of visas to its service professionals. In the agriculture sector India has conveyed its sensitivities to the UK. According to officials, many sensitive areas in the negotiations have already been resolved.
The UK is the fourth biggest export market for India with shipments growing 12.0% on year to $ 14.5 billion in 2024-25.
Source: The Financial Express / Millennium Post
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