 "UK kick-starts preparations ahead of talks on trade deal with India")
The UK on Tuesday launched a 14-week consultation to seek views of the public and businesses, as it gears up for a trade deal with India, according to an official statement released by the UK government.
Free trade agreement (FTA) negotiations are expected to begin around autumn this year. Earlier this month, India and the UK inked a slew of pacts, including the launch of an enhanced trade partnership (ETP), which would include negotiating a comprehensive FTA and an interim trade agreement for delivering early gains.
Both nations had decided to work towards a roadmap for concluding pre-FTA discussion by year-end.
“The UK wants a deal that slashes barriers to doing business and trading with India’s £2 trillion economy and market of 1.4 billion consumers. This includes removing tariffs of up to 150% on whisky and 125% on British-made cars,” an official statement said.
Both the countries had agreed to conclude the pre-FTA discussions by the end of this year. They also decided for an interim trade deal for an FTA by the middle of next year.
Public consultations are expected to help the UK firm up a deal to include ‘closer cooperation’ in industries such as science, technology and services, creating high-value jobs across the country. These consultations will include a questionnaire to help the country understand participants’ experiences and priorities while doing business with India.
UK aims to make it easier for services firms to operate in the Indian market, boosting the UK’s status as an international services hub, the statement said, adding that India’s growing middle-income population and highly connected youth will be the target consumers for the type of goods and services the UK excels in.
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“We’re firing the starting gun on a free trade deal with India – the world’s largest democracy, fifth biggest economy, a nation of 1.4 billion people and a huge market for British goods like whisky, cars and services. We want an agreement that pushes new frontiers in industries of the future and helps us build a greener, more innovative and more services-led economy that will deliver higher-paying jobs across the country,” the statement quoted UK International Trade Secretary Liz Truss as saying.
UK India Business Council welcomed the development. “The voice of business will be crucial to successful trade negotiations and so the launch of HMG’s pre-FTA business consultation is most welcome. Businesses are enthusiastic about the opportunities presented by the possibility of a comprehensive UK-India Free Trade Agreement. Business and the UKIBC will play their parts,” UKIBC Chair Richard Heald said.
