Underway : India - UK Free Trade Agreement

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India and the United Kingdom, both countries have made exits or not join an economic partnership in their regions to protect their economic interests. Britain for example has left the European Union, and thus needs to form partnerships with key economies to bolster its relationships with states. India on the other hand abstained from joining RCEP, Regional Comprehensive Economic Partnerships, for reasons purely economic. India had understandable apprehensions about the flooding of its markets with Chinese goods given the relaxed import rates provisioned in RCEP. It is however important to note that India and UK have been key trading partners. India also has a significant diaspora in the UK providing services in diverse sectors. Therefore, both countries now intend to take their relationship forward and improve it significantly over the next 10 years with this free trade agreement.

The talks between the two countries have already started. It is expected that they shall arrive at a possible conclusion over their needs and demands as the year closes. In this context, we need to understand what does India seeks from this agreement. 

India wants to get some relaxation as far as the visa norms are concerned. As mentioned earlier India has a significant diaspora in the UK, and citizens are keen to move there for lucrative career opportunities, thus this shall be a priority for India going ahead. It wants to ensure the free movement of skilled professionals from the country.  India has focused to increase the export of services in the nursing, education, and IT industry. It is also expected that the agreement can cover 90% of tariff lines. Both countries want to cooperate in areas related to IPR, GI, Digital Technology, and anti-corruption. For India, important products to include are textiles, footwear, marine products, iron and steel, gem and jewelry, and food products. There has also been some mention that a data adequacy agreement can also be signed to facilitate cross border movement of personal data and to protect consumers online. In return the UK hopes for relaxed customs procedures and a

reduction in import duties on products such as whiskey and automobile.

As the story unfolds we shall be able to get a better picture of what all the agreement could entail. The agreement and expectation have so far been ambitious and optimistic. Both countries are negotiating similar terms with economies of interest. Only by the end of the year, we shall be able to see the agreement take its full form. 

Source: Financial Express

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