October 18, 2022
2 mins read

India not to rush into FTA with UK

Sources in New Delhi said that India will exercise “extreme caution” to ensure that the trade agreement is fruitful for both countries ..writes Mahua Venkatesh

India will go into a trade pact with the UK only if it is mutually beneficial. While UK in the post Brexit phase is looking to expedite the inking of the proposed free trade agreement (FTA) with India, New Delhi will weigh the pros and cons carefully after British Home Secretary Suella Braverman damaging statement that Indian migrants make up for the “largest group of people who overstay” in the country.

The Telegraph said that the British want Indian trade.  “But it doesn’t want Indians,” it added.

British Prime Minister Liz Truss has been eager to ink the FTA. Truss, who was earlier International Trade Secretary under former PM Boris Johnson signed off on the India-U.K. Enhanced Trade Partnership (ETP), which laid the foundation for the negotiations.

Several non-trade issues related to labour, government procurement, environment besides visa regime under the Migration and Mobility pact could also come up as challenges to the ongoing negotiations.

India as part of the pact, among other things, sought greater access to its skilled workers.

Sources in New Delhi said that India will exercise “extreme caution” to ensure that the trade agreement is fruitful for both countries even as British foreign minister James Cleverly quickly jumped into the fray as a damage control exercise.

“We do want to have an even stronger, and it’s strong already, but an even stronger trading relationship with India,” he said.

“We must carefully weigh all pros and cons before signing the agreement. Seemingly there doesn’t seem to be much advantage in terms of trade in goods, and we also have to be sufficiently cautious about non-trade issues, and also the fact that we must make them agree to relax norms for movement of natural persons…. we must remember that the earlier FTAs that were signed have not borne fruit,” Ashwani Mahajan, national co-convenor of Swadeshi Jagran Manch told India Narrative.

India, already irked by Britain’s protectionist policy for its steel industry, has lodged an objection with the World Trade Organisation.

In November 2020, India exited the much hyped Regional Comprehensive Economic Partnership (RCEP), saying that the agreement would be detrimental to the Indian manufacturing sector as it would have to face stiff competition with a surge in imported goods.

While in the past, India entered into several free trade agreements, including one with the ASEAN (Association of Southeast Asian Nations) block, the deals have not been successful from India’s point of view with increased imports.

Commerce and Industry Minister Piyush Goyal has reiterated that trade agreements between countries must be “fair and balanced”.

ALSO READ: DefExpo 22 to be exclusively for Indian firms

Previous Story

Congress presidential poll sees 96% turnout

Next Story

India offers operational, cyber security training to Philippines military

Latest from -Top News

Hamas Reiterates Peace Effort After U.S. Jab

Hamas Reaffirms Commitment to Ceasefire Talks After U.S. Criticism…reports Asian Lite News Hamas on Friday reiterated its commitment to the ongoing ceasefire negotiations, responding to remarks by U.S. Special Envoy to the

No smoking gun in Epstein files: Trump briefed

Attorney General Pam Bondi briefed Trump and Deputy Attorney General Todd Blanche at the White House in May….reports Asian Lite News US President Donald Trump was informed earlier this year that his

Israel, US recall teams from Gaza truce talks

Steve Witkoff said mediators had made a great effort but “Hamas does not appear to be coordinated or acting in good faith”…reports Asian Lite News Israel and the United States recalled their

Trump presses Fed chief to cut rates

Fed chair pushes back on Trump criticism of renovation costs as president presses central bank to cut interest rates…reports Asian Lite News Donald Trump sparred with the Federal Reserve chair, Jerome Powell,

Dubai turns malls Into fitness zones

Dubai’s Mallathon reimagines shopping centres as fitness zones, encouraging residents of all ages to walk, run, and connect—fostering healthier habits in air-conditioned comfort….reports Asian Lite News In a bold move to blend
Go toTop

Don't Miss

JJP offers Cong support to bring down Haryana govt

The JJP was a partner in the BJP-led alliance government

Kashmir gets ready to showcase its beauty to G20 delegates

Around 50 delegates are expected to participate in the G-20