While the world is trained in a trade war, India and the United Kingdom will sit and take up negotiations on a free trade agreement on February 24. A team of UK negotiators will be in New Delhi to start the 15th cycle of talks.
Negotiations on the ALE have been suspended for about a year-a period that has seen a change of government in the United Kingdom, the return of President Donald Trump to the United States and the start of a tariff war involving the biggest economies of the world.
Having imposed prices in Canada, Mexico and China, Trump said that similar measures could be taken against the European Union “very soon”. However, he left an open window for an agreement with the United Kingdom. As the largest importer in the world aims to limit imports, large exporting countries are looking for markets elsewhere and a renewed thrust for bilateral and regional commercial pacts is expected, according to experts.
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The recent decision of India to withdraw protectionism by reducing cutting -edge rights to 70% of 150% would be another factor which will guarantee that negotiations will restart on a different note and not exactly to a point where things have been left in March 2024, the experts say.
Ale negotiations between India and the United Kingdom were launched in January 2022 and since then, 14 cycles of talks have taken place between officials from both parties. Some rounds have been fired for a long time. Despite the intensity of the discussions, some of the questions must still be settled.
From an Indian point of view, the United Kingdom’s demand for greater access to the market in cars, whiskey and certain other problems related to trade such as rules of origin and intellectual property rights are Key areas that take time for resolution.
In the service sector, the United Kingdom requires national treatment for its companies. India’s demand for easier access to the British market to its professionals thanks to a liberal visa regime is one of the areas where the common ground escapes the negotiators.
In addition to the reduction in prices, the budgetary announcement of the increase in the limit of foreign investment to 100% insurance would be useful for pushing negotiations in the service sector. .
The budgetary announcement of the revision of the text of the model investment treaty to make it more user -friendly on investments will also give pressure on Bit negotiations. The United Kingdom is the 16th Trade Partner of India and one of the three countries among the first 20 with which it has a surplus.
In April-November 2024, bilateral trade between the two countries amounted to $ 15.0 billion. India exports to the United Kingdom amounted to $ 9.6 billion and imports were $ 5.4 billion. The two countries also have a trade in substantial services. Exports from services to the United Kingdom are higher than exports of goods. Exports of services to the United Kingdom in 2023 amounted to $ 17.7 billion, while imports were $ 12.9 billion. The Total IED of the United Kingdom in India amounts to $ 35.2 billion while Indian investment in the United Kingdom is $ 12.9 billion.
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