Union Minister of Commerce and Industry Piyush Goyal is visiting the United Kingdom on July 10-11 to assess the progress of the free-trade agreement (FTA) negotiations between India and the UK. The Ministry of Commerce and Industry announced that he will also discuss advancements in the trade pact with the European Free Trade Association (EFTA) member countries, according to an official statement released on Sunday.

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This visit comes at a critical moment as the FTA nears completion per an exclusive interview the UK's Minister of International Trade Nigel Huddleston gave PTI. India and the UK are committed to expanding their economic ties and exploring avenues for enhanced bilateral trade.

"With the FTA negotiations gaining momentum, the visit aims to further propel the discussions and pave the way for a comprehensive and mutually beneficial agreement that would drive economic growth and strengthen ties between the two nations," the statement said.

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During his visit, Goyal will meet his UK counterparts, including the Secretary of State for International Trade, as well as representatives from various sectors and industries.

"These meetings will provide an opportunity to discuss the key priorities and objectives of the FTA negotiations, with a focus on addressing trade barriers, promoting investments, and fostering greater cooperation in areas such as technology, innovation, and intellectual property rights," the statement said.

Goyal will also meet with ministers and officials from EFTA member countries, namely Switzerland, Norway, Iceland, and Liechtenstein, to assess the progress made in the ongoing negotiations of the Trade and Economic Partnership Agreement (TEPA).

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The TEPA aims to enhance trade and economic cooperation between India and the EFTA member countries, fostering an environment conducive to increased investments, reduced trade barriers, and greater market access.

About the India-UK FTA

The negotiations for a trade agreement between India and the UK were initiated on January 13, 2021. As of June this year, ten rounds of talks have been completed, and both sides are working towards concluding the negotiations as soon as possible.

The negotiations cover 26 policy areas/chapters, while investment is being separately negotiated as a bilateral investment treaty, which will be concluded simultaneously with the free trade agreement.

Bilateral trade between India and the UK has increased to $20.36 billion in 2022-23, compared to $17.5 billion in 2021-22. India's main exports to the UK include ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment, spices, machinery and instruments, pharmaceuticals, and marine products.

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The main imports consist of precious and semi-precious stones, ores and metal scraps, engineering goods, professional instruments (excluding electronics), chemicals, and machinery.

In the services sector, the UK is the largest market in Europe for Indian IT services. Regarding investment, the UK is one of the top investors in India, with $1.74 billion in foreign direct investment from Britain in 2022-23, compared to $1 billion in 2021-22. The total investments between April 2000 and March 2023 stood at $33.9 billion.

On April 26, India and EFTA discussed resuming negotiations for the agreement. Such agreements involve significantly reducing or eliminating customs duties on the maximum number of traded goods, along with relaxed regulations to promote trade in services and investments.

EFTA countries are not members of the European Union (EU). EFTA serves as an intergovernmental organization that promotes and intensifies free trade. It was established as an alternative for states that chose not to join the European Community.

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India's exports to EFTA countries during April-February 2022-23 reached $1.67 billion, while imports totalled $15 billion during the 11-month period, compared to $1.74 billion and $25.5 billion respectively in 2021-22. The trade gap is currently in favour of the EFTA group.

With agency inputs.

First Published:Jul 10, 2023 12:18 PM IST