India, UK talks for proposed pact moving towards final stages: Sources

NEW DELHI : The negotiations for the proposed free trade agreement between India and the UK are progressing towards the final stages, with both sides working to resolve remaining issues, sources said.

They said that a UK team was here to discuss issues in the bilateral investment treaty.

Finance Minister Smt. Nirmala Sitharaman on April 9 wrapped up the 13th Ministerial India-UK Economic and Financial Dialogue (EFD) with her British counterpart, Chancellor Rachel Reeves, on a note of positivity and eagerness to conclude the bilateral Free Trade Agreement (FTA) negotiations soon.

Sources indicated that now another full round of negotiations is unlikely as discussions are progressing at a faster pace.

On February 24, Commerce and Industry Shri Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds announced the resumption of negotiations for the proposed FTA between the two countries.

The negotiations resumed after a gap of over eight months. The talks were launched on January 13, 2022. So far, 14 rounds of talks have been completed.

The two countries are actively negotiating on three different fronts – FTA, a bilateral investment treaty (BIT), and a Double Contribution Convention Agreement.

In the BIT, the sticking point between the two nations is with regard to the resolution of disputes.

On the progress of negotiations for the proposed India, European Union (EU) free trade pact, one of the sources said that both are discussing for an early harvest agreement.

“In-principle they are agreed for that,” the source added. The 11th round of negotiations is scheduled from May 12-16 here. The two are looking to conclude the free trade agreement in phases amidst an uncertain global trade environment.

India has followed the practice of negotiating such trade pacts in two phases with Australia.