India-UK FTA Talks: Outstanding Issues to Be Addressed Post-Elections

The proposed free trade agreement (FTA) between India and the UK will be revisited after the UK's general elections. Key issues such as duties on electric vehicles, alcoholic beverages, and services need resolution. Talks include complex topics like carbon tax with the EU and ongoing FTA discussions with Oman and the GCC.

The pending issues regarding the proposed free trade agreement (FTA) between India and the UK will be revisited once the general elections in Britain are concluded, a senior government official announced on Friday.

Key matters to be sorted involve duties on electric vehicles, alcoholic beverages, and services. 'The outstanding issues will be resolved post-UK general elections,' Additional Secretary in the Department of Commerce L Satya Srinivas informed reporters.

The UK will hold its general elections on July 4. Initiated in January 2022, the India-UK FTA aims to strengthen economic ties through its 26 chapters covering goods, services, investments, and intellectual property rights.

Bilateral trade between the two nations grew to USD 21.34 billion in 2023-24 from 20.36 billion in the previous fiscal year. Regarding the India-EU trade pact, Srinivas mentioned that the eighth round of talks will occur from June 24-28 in Brussels.

Another official noted a growing willingness from the EU to better understand India's perspectives, with a 'China-plus' narrative also emerging in FTA negotiations. Discussions with the EU have also touched upon the imminent carbon tax, set to be effective from January 1, 2026.

In the proposed free trade agreement with Oman, negotiations are nearing completion despite some concerns. Oman, a key export destination among Gulf Cooperation Council (GCC) nations, seeks duty concessions on petrochemical products like polypropylene and polyethylene.

The GCC countries, including Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain, show strong interest in an FTA with India. Discussions also include bilateral investment treaties (BIT) to promote and protect mutual investments.

India's alignment with global investment practices is crucial as it targets becoming the third-largest economy. The nation has canceled 77 of its over 80 BITs by 2016, which didn't align with its interests, per Economic think tank GTRI.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)