By Himanshu TewariThe recent announcement of UK FTA India is new in the series of bilateral ftasnegotivated in the recent past – from Australia, followed by water and EFTA countries (Norway, Switzerland, Liechtenstein, Iceland). It demonstrates a very deliberate and safe approach to the expansion of the imprint of the ALE in India to obtain market access for goods of Indian origin and the opening of new growth routes and international cooperation.It is the joint success of India’s trade and foreign policy.A successful negotiation of the ALE with the United Kingdom – until the end of the last part of the EU, also augurs well from the progress that India will be able to make with the EU FTA negotiations which awaited a decisive push after the last thirteen years of negotiations. India EU FTA has been retained on problems such as unconditional access on the market to European luxury car manufacturers at concessional service rate, better access to the alcohol-beaning sector and a need for data status for India.As the GDP press release published on May 6 shows, some of the long -standing disputed questions, which have retained the EU India negotiations, have been successfully discussed in UK Ale India. Illustratively gradual illustrative reduction in the importance rates on the importation of fully built cars in the United Kingdom over a period of ten years, subject to the upper limit of the number of cars that can be imported in one year.This access based on the quota to luxury cars or entirely built within the framework of the ALE is a unique solution which balances the attraction of the policy opposed to the granting of market access, but without having a negative impact on the national industry. The simultaneous reduction of functions on cars and the implementation of annual limits to complete built cars are a balanced solution.We have seen this position playing even in the event of reducing the basic customs duties on the import of superbikes approximately 1600 cc of engine capacity, or in the event of an electric vehicle policy, allowing access to a certain number of EVs constructed complete subject to an investment commitment.In addition, the reduction in rights rate on the importation of whiskey was another long -standing problem which seems to be resolved not only under the ALE in UK India, but also when India has unilaterally announced the reduction in the rate of rights on Bourbon whiskey of American origin.All these developments are a good omen for a positive result in India has FTA. The EU is the second trading partner in India and the ALE with the EU would be a powerful victory in foreign policy for the government.The initial sound stings on the impact of UK FTA India are very encouraging, but the small characters of the agreement must still be analyzed. Open questions are the number of cars that must be imported each year; How will the origin of these cars be established; How to set up license and control; If DGFT will be the nodal agency for granting and monitoring the annual quota; If the quota will be issued on the name of the company.There are many questions that would require an answer.This new flexibility and determination demonstrated by the government to find solutions gaining-win to long-term waiting problems is a welcome development that would open the doors of a new economic activity which could continue to stimulate GDP growth and better relations with partner countries. And the time of UK FTA India cannot be better when India also expects to close bilateral commercial discussions with the US government.The signing of a series of new FTAs underlines the success of the foreign policy of the foreign policy of India, working together.(The author is Himanshu Tewari, partner, commerce and customs, KPMG in India)
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