The planned trade agreements with the UK and European Free Trade Association (EFTA) are the closest to being finalised, people familiar with the matter said on Wednesday. The Indian government is hoping to conclude at least one of the free trade agreements (FTAs) it is currently negotiating during the country’s G20 presidency.
India is negotiating FTAs with the European Union (EU), Canada, and EFTA in addition to the UK and EFTA. Additionally, negotiations to transform an existing trade agreement with Australia into a comprehensive economic cooperation agreement (CECA) are in progress. The planned Economic and Technology Cooperation Agreement will now be discussed again, India and Sri Lanka decided last month.
During meetings between July 3 and July 6, the two sides discussed fundamental issues including trade in goods and services, rules of origin, intellectual property rights (IPR), and sustainable development. Due to “high-level political involvement” in the process, many of these issues were met with broad agreement, according to one of the people.
The 18th round of negotiations was historic because it started formal negotiations again following the round that ended in 2017. According to a second source, the difficult topics being discussed in the negotiations include tariffs, intellectual property rights (IPR), migration, and professional and student mobility, which has emerged as a major demand from the Indian side in all FTA negotiations.
EFTA is a very tiny organisation, but the people said there is a lot of interest in getting access to cutting edge technologies created by its members in fields like waste management and green and renewable energy.
To safeguard the domestic booze business, India may accept discounted imports of only premium whisky from the UK, as long as both parties benefit, he said. Without any non-tariff obstacles, high-quality Indian spirits must have access to the markets in the UK, he continued.
According to the source, India wants more mobility for students, professionals, and skilled employees in the UK since this is essential for the expansion of trade between the two countries.
According to the sources, it is not yet certain when one of the FTAs would be signed while India holds the G20 presidency, but officials continue to hold out optimism that at least one trade agreement will be signed by the end of the year. They claimed that it is doubtful that the planned trade agreement with the EU, which involves lengthy negotiations on a variety of complex problems, will be completed so quickly.
“It is highly challenging to provide a certain date for the conclusion of FTA discussions. However, if there is enough political will, it is anticipated that at least one of the two accords would be completed during India’s G20 presidency.
India will host the G20 Summit on September 9 to 10, 2022, after assuming the presidency for a year on December 1, 2022.
