India and the UK are said to have covered significant ground in three rounds of trade talks earlier this year, but critics have said this amounted to plucking the low hanging fruits first…reports Asian Lite News
The UK has completed most of the sections of the much-awaited free trade agreement (FTA) with India, but would sign the deal only once “it is happy that the pact is fair and reciprocal”, said British Trade Department Minister Greg Hands.
“We have already closed the majority of chapters and look forward to the next round of talks shortly. We are working towards the best deal for both sides and won’t sign until we have a deal that is fair, reciprocal and ultimately in the best interests of the British people and the UK economy,’’ Hands told Parliament. The government’s deadline of a deal by Diwali, however, remained unfulfilled, largely due to the sudden resignation by PM Liz Truss.
However, the government said duty on liquor was a major sticking point. If that is so, observers say the deal was still stuck where it was six months ago when the UK was pressurising India to cut its tariff on alcoholic beverages and processed food while resisting New Delhi’s demand that more Indian professionals should be allowed to live and work in the UK.
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India and the UK are said to have covered significant ground in three rounds of trade talks earlier this year, but critics have said this amounted to plucking the low hanging fruits first. The UK has so far agreed to reduce duty on Indian rice and textile goods and New Delhi is set to reciprocate by allowing zero duty entry for UK’s apples, medical devices and machinery.
The FTA is said to have the potential of doubling bilateral trade to about $100 billion by 2030. The new UK PM, Rishi Sunak, on Wednesday said he was confident this government would rise to the challenge and deliver for the whole of UK. In case India and the UK are unable to agree on the tougher parts, they could ink an interim agreement pact that will cover 65 per cent of goods and up to 40 per cent of services, with the coverage in goods expected to go up to 90 per cent in the full agreement.
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