Despite roadblocks on several counts, India's trade talks are progressing with several countries and trade blocs. Government sources have indicated that talks on the 13th round of the India-UK FTA (Free Trade Agreement) talks are currently underway in virtual mode, even as no deadline has been specified so far on when the talks will be concluded.

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While talks continue for mutual regulatory support between India and the UK, sources said that the subject of standards may also be included in the FTA. Once undertaken, such a move may lead to harmonisation of regulatory standards between both the countries.

India-UK bilateral trade has increased from $17.5 billion in 2021-22 to $20.36 billion in 2022-23. Launched on January 13, 2022, the India-UK FTA had witnessed 12 rounds of negotiations being completed by August 2023. The negotiations cover 26 policy areas/chapters, out of which 19 chapters have been substantially closed and significant progress has been observed in the other chapters as per India's Commerce Ministry. With the talks reaching a critical juncture, both sides are now discussing contentious issues like tariffs on alcohol, Scotch whisky, rules of origin and visas for professionals.

India is also looking to make further headway in the ongoing IPEF (Indo-Pacific Economic Framework) negotiations. Launched in May 2022, IPEF currently has 14 member nations: Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Thailand, United States and Vietnam.

Commerce and Industry Minister Piyush Goyal and senior ministry officials are slated to travel to San Francisco in the United States next week for talks on the second pillar of the IPEF. Government sources told CNBC-TV18 that inter ministerial consultation as well as negotiations with several countries are underway, and India is looking at an egalitarian and fair approach in the agreement, which accrues gains to all countries. Sources added that India already has an observer status in IPEF's Pillar 1 (Trade).

The US wants India to join the trade pillar of the 14-nation bloc IPEF and wants to conclude negotiations on all pillars by the end of 2023. While India remains open to examining proposals by the US on IPEF's trade pillar, India has been reluctant to join the IPEF trade pillar in order to protect local industry and livelihoods in the agricultural sector. India has already joined three pillars of IPEF on supply chains, clean economy and fair economy.

Also Read:Differences persist as India and UK continue deliberations on Free Trade Agreement

(Edited by : Sangam Singh)

First Published:Nov 3, 2023 7:00 PM IST