In the shadow of American prices, India returns to the table for commercial discussions with the United Kingdom, EU | Commercial news

The trade agreement with the United Kingdom, whose discussions began in 2022, assumes importance because it would be the first full-fledged agreement of India with a Western country, facilitating more in-depth economic integration with a great chief of the global sector of global services.

It is also considered to be crucial because it could serve as a model for trade agreements with large Western business partners such as the European Union.

Thursday, in the midst of growing tensions in transatlantic relations between the United States and Europe, the college of EU commissioners should meet Prime Minister Narendra Modi to further strengthen bilateral relations on the basis of “increasing convergences” .

The Minister of Affairs and Trade of the United Kingdom, Jonathan Reynolds, with the Minister of Commerce, Piyush Goyal, at the National Crafts Museum. (X @ piyushgoyal)

India and the EU should also lead bilateral ministerial meetings and engage in a commercial and technological advice, which has been launched to solve problems such as the controversial carbon borders (CBAM) adjustment mechanism.

“India and the United Kingdom have decided to return to the negotiating table for a trade agreement that was blocked due to the elections. The contours of the agreement had to be reassessed. The two countries actively negotiate three different fronts – a free trade agreement, a bilateral investment treaty and a double -contribution agreement agreement. All three take place in parallel and are interconnected, “said Monday the Minister of Commerce, Piyush Goyal.

The growth trajectory being different in the two countries, the potential commercial opportunities were very different and, therefore, India had asked the United Kingdom to envisage a social security pact.

This is a long-standing request for Indian companies operating in Great Britain to reduce the burden of additional costs associated with the loved Indian professionals in the short term.

In particular, the compulsory contributions of national insurance (NI) of qualified Indian professionals in the United Kingdom on temporary visas remain an additional cost burden of around 500 British pounds per employee per year, on and more of all other taxes And supplement of health paid for the National Health Service (NHS), according to data from 2021.

India has social security agreements (SSA) with countries like Belgium, Germany, Switzerland, France, Denmark, Korea and the Netherlands.

“The trade ministers of the two countries will start negotiations on a modern economic agreement with two days of targeted discussion – the first time that the two negotiation teams officially meet under this government,” said the British High Commissioner in A press release.

Commerce experts have said that negotiations with Western business partners could receive new momentum in the uncertainty created in the world of world trade by us. In addition to close business partners such as Canada and Mexico, Trump has also threatened with EU prices.

Prices and visas

Answering a question about India’s high prices and the United Kingdom’s position on the issue, Goyal said that India’s prices are in place to protect national companies against non-commercial economies, and that ‘Trade agreement would lead to a drop in prices between the two countries.

This comes among Trump’s criticism and threats of reciprocal prices that could have an impact on the agricultural sector of India, which traditionally benefits from high protection.

The India’s pricing regime was a concern for business partners, as the country has one of the highest customs duties on global imports.

While the average price on goods imported from India in the United Kingdom is 4.2%, the average price in India on goods imported from the United Kingdom is 14.6%. On the visas, the minister said that immigration had never been part of the agreement and that short -term trade visas included in trade negotiations are distinct from the general visa policies.

Market access for whiskey

While the United Kingdom has asked India to reduce tasks on cars, whiskey and other items, India has requested better access for its service sector in the United Kingdom. Negotiations on cars and whiskey have been controversial because the Indian industry has sought better access to the British market. Indian whiskey manufacturers have urged the United Kingdom to mitigate its maturation rule over three years, which acts as an obstacle, while New Delhi is also looking for service concessions in the automotive sector, especially in the EV segment.

The British trade secretary, Reynolds, said that business mobility visas, which deal with short -term work agreements, are one of the main demands of British companies, adding that the trade agreement with India is An “absolute priority”.

In the midst of talks for an investment treaty, the British High Commissioner said that the Minister of Investments Poppy Gustafsson would aim at investors in Mumbai and Bengaluru.

“India has been the second source of IED in the United Kingdom for five consecutive years in terms of number of projects. In terms of value, the most recent statistics show a 28% increase in annual slip of investment stocks at the end of 2023, “said the High Commissioner.

Bilateral trade between India and the United Kingdom increased to $ 20.36 billion in 2022-2010, from $ 17.5 billion in 2021-20-2010.

Treat with the EU

Meanwhile, nine series of talks occurred between India and the EU, the 10th round of negotiations which should take place from March 10 to 14 in Brussels. In the ninth round, discussions covered a range of questions, in particular goods, services, investment, government purchases, origin rules, health and phytosanitary measures (SPS) and technical trade barriers, said the Ministry of Commerce in a statement last month.