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FTA with UK gathers steam, committee of secretaries reviews pact.
Oct 23, 2023
A committee of secretaries chaired by the cabinet secretary, on Thursday, took stock of the status of the ongoing talks under India-UK free trade agreement on issues such as rules of origin, tariffs and phasing out of duties to iron out the knotty areas.
According to people familiar with the development, the commerce department made a detailed presentation on the pending issues in the run-up to the finalisation of the trade pact, which is expected to be inked later this month in the presence of UK Prime Minister Rishi Sunak.
'Trade negotiations with the UK are happening at a fast pace. A committee of secretaries was briefed about the pact,' said an official.
Senior officials from the departments of agriculture, pharmaceuticals, food processing, finance and heavy industries took part in the meeting, a key step in the run up to inking of the trade pact.
Last week, senior commerce and industry ministry officials made a presentation to the Prime Minister's Office on the agreement and the two sides are engaged in hectic negotiations.
It will be New Delhi’s first such comprehensive deal with an industrialised nation that seeks to spur bilateral annual business beyond the current $20 billion.
The pact will have 26 chapters. Product-specific rules, value addition, change in the chapter heading, and certification are being discussed in the rules of origin chapter, where an in-principle agreement has been reached.
'Since the supply chains of the UK and EU are closely integrated, the UK is keen on liberal rules of origin and this is a sticking point,' said a trade expert.
India has sought assurance that the UK will not be used to route goods from other countries, as New Delhi is keen to check its burgeoning trade deficit that hit $263 billion in the 2022-23 financial year, up from $191 billion the year earlier.
economictimes.indiatimes.com
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