‘India-UK FTA talks may take time as some issues still pending’

New Delhi: The conclusion of negotiations for three pacts, including the proposed free trade agreement (FTA) between India and the UK may take some more time, as both sides are yet to resolve certain outstanding issues, sources said. There are four or five issues in the three pacts that the two countries are negotiating, they added.

The three pacts under negotiation are — FTA, bilateral investment agreement (BIT), and social security pact (officially dubbed as Double Contribution Convention Agreement).

The progress of talks were recently reviewed during meetings between Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds last week in London. “Certain critical issues are still there. Some more meetings would happen,” one of the sources said.

Issues that may need some more discussions included sunset clause in the BIT, UK’s new carbon tax, and data localisation.

The two sides were preparing to announce the closure of these negotiations on April 29 in London but differences cropped up at the last minute.

Goyal concluded his two-day visit to London on April 29. He then visited Oslo (Norway) and Brussels before returning to London on May 2. The minister is reaching the national capital on Sunday.

Finance Minister 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 positive note and expressed eagerness to conclude the agreement negotiations soon.

Earlier on February 24, Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds had announced the resumption of negotiations for the proposed FTA between the countries.

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

In FTAs, two countries either eliminate or significantly reduce customs duties on maximum goods traded between them. They also ease norms for promoting trade in services and bilateral investments.