India-UK FTA: Scotch whiskey, EV, services issues may figure in 14th round of talks in January

The upcoming round of Free Trade Agreement (FTA) discussions between India and the UK in January is expected to address issues such as duty concessions on scotch whisky and electric vehicles (EVs), along with matters concerning the services sector, including the mobility of skilled workers, according to an official.

The official also indicated that substantial progress has been made in resolving most of the issues in the rules of origin and intellectual property rights (IPRs) chapters among the 26 chapters in the agreement, covering goods, services, investments, and intellectual property rights. Despite nearing the conclusion of negotiations, both parties still need to reconcile differences on key matters, including the British request for significant customs duty concessions on scotch whisky and EVs, as well as the liberalization of norms in service sectors such as banking, insurance, and legal. India is pressing for easy movement of professionals.

Having completed 13 rounds of talks, the two countries are scheduled for the next round in January 2024. The Indian industry is advocating for increased access for its skilled professionals, particularly in IT and healthcare, in the UK market, along with market access for goods like textiles and leather with zero customs duties.

Conversely, the UK is seeking a notable reduction in import duties on items such as scotch whisky, automobiles (including EVs), lamb meat, chocolates, and specific confectionery items. The UK is also interested in expanding opportunities for its services in Indian markets, especially in telecommunications and financial services.

The official, who chose to remain anonymous, mentioned that there are also some pending issues in the proposed bilateral investment treaty (BIT). India and the UK initiated FTA talks in January 2022, with bilateral trade increasing to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.

Additionally, progress is being made in talks for proposed trade agreements with Oman and the European Free Trade Association (EFTA) bloc. India and the EFTA bloc (Iceland, Liechtenstein, Norway, and Switzerland) are negotiating a Trade and Economic Partnership Agreement (TEPA) aimed at enhancing economic ties.

भारत-यूके FTA: 14वीं चरण में स्कॉच व्हिस्की, ईवी, सेवाओं के मुद्दे शामिल हो सकते हैं।