India–United Kingdom Free Trade Agreement

The India–United Kingdom free trade agreement is a proposed free trade agreement which began negotiations in January 2022.^[1] When completed it will be the first comprehensive free trade agreement that India has signed with a European country; it is expected be the third trade agreement signed by Britain since leaving the European Union negotiated completely anew.^[2]

India–United Kingdom Free Trade Agreement

India   United Kingdom
Type	Free trade agreement
Context	Trade agreement between India and the United Kingdom
Negotiators	Piyush Goyal Anne-Marie Trevelyan until 6 September 2022 Kemi Badenoch from 6 September 2022
Parties	India United Kingdom
Language	English

Negotiations

IUKFTA Round of Negotiations

Round	Dates	Location	Ref.
1	17–28 January 2022	Virtual meeting	^[3]
2	7–17 March 2022	London	^[4]
3	25 April–6 May 2022	New Delhi	^[5]
4	13–24 June 2022	London	^[6]
5	18–29 July 2022	New Delhi	^[7]
6	12–16 December 2022	New Delhi	^[8]
7	6–10 February 2023	London	^[9]
8	20–31 March 2023	New Delhi	^[10]
9	24–28 April 2023	London	^[10]
10	5–9 June 2023	New Delhi	^[11]
11	5–14 July 2023	London	^[12]
12	8–31 August 2023	New Delhi	^[13]
13	18 September–15 December 2023	London, New Delhi	^[14]

In May 2021, British Prime Minister Boris Johnson and Indian Prime Minister Narendra Modi agreed deeper trade co-operation between the two countries.^[15] This “Enhanced Trade Partnership” removed a number of trade barriers and set out the two countries’ intention to work towards a free trade agreement.^[16]

India and the UK launched negotiations in January 2022.^[17] Johnson declared that the agreement should be completed by Diwali 2022.^[18][19] Despite this, in October 2022, the Secretary of State for International Trade, Kemi Badenoch, said that the Government was no longer working to this deadline.^[20] She stated that the Government wanted “to focus on the quality of the deal rather than the speed of the deal”.^[21]

By December 2023, the UK and India had reached the 13th round of negotiations, deciding to fast track the agreement in order to complete prior to the elections in both countries the following year.^[2] Negotiations between both countries are locked in several issues, one of which is the UK's concerns about agreeing to visas for professionals demanded by India.^[22] The thirteenth round of negotiations concluded on 18 December 2023.^[14]

The fourteenth round of negotiations began on 10 January 2024.^[23] India has been pushing to include social security payments for Indian workers in the UK, Badenoch is reportedly “keen to avoid” this.^[24] In March, UK Negotiators flew to India in a “last-gasp attempt to clinch an FTA before the Indian election campaign pauses talks”, according to a UK government official, adding that India believes “they will get more out of Labour on visas and social security”.^[25] Shadow Secretary of State for Business and Trade Jonathan Reynolds and Shadow Foreign Secretary David Lammy visited India the month prior to talk with Indian officials.^[26] The UK is asking for access in India's government procurement as well as signing a bilateral investment treaty before concluding the FTA.^[27] Some British trade officials are increasingly pessimistic about the India deal and see a free trade agreement with the Gulf Cooperation Council as a more realistic deal which can be struck prior to the next election.^[25] The fourteenth round of negotiations remain open without a breakthrough on major outstanding issues between the two countries, India became primarily focused on their upcoming general election.^[28] Badenoch stated that she would not use the Indian elections as a deadline, just prior to India signing a free trade agreement with the European Free Trade Association, whose members include Iceland, Liechtenstein, Norway, and Switzerland.^[29] On 12 March, Modi and British Prime Minister Rishi Sunak agreed to work for an early conclusion of the free trade agreement, during a phone call.^[30][31]

On 15 March, it was announced that negotiations will be "put on ice" until spring after India's election concludes.^[32][33] At the beginning of April, the Indian Ministry of Commerce and Industry placed the completion of India–UK FTA as their priority for 100-day agenda after a new government takes charge.^[34] Despite the fourteenth round being declared the prior month, the round remained open by request of India in April 2024; India demanded an exemption from the UK’s planned carbon tax, as well as concessions on visas for Indian workers and, a social security agreement.^[35]

See also

•  India portal
•  United Kingdom portal
•  Politics portal

• Free trade agreements of India
• Free trade agreements of the United Kingdom
• Foreign relations of India
• Foreign relations of the United Kingdom
• India–United Kingdom relations

References

1. Parker, George; Parkin, Benjamin (22 August 2023). "UK-India trade talks intensify in bid to remove 'significant' barriers". Financial Times. from the original on 22 August 2023. Retrieved 22 August 2023.
2. Srivastava, Shruti (5 December 2023). "India, UK Seek to Wrap Up Trade Talks Before Busy Election Year". Bloomberg. from the original on 6 May 2024. Retrieved 6 May 2024.
3. Trevelyan, Anne-Marie (28 January 2022). "Joint outcome statement: India-UK round one FTA negotiations". GOV.UK. from the original on 28 January 2022. Retrieved 23 April 2024.
4. Lord Grimstone of Boscobel (24 March 2022). "India Trade Negotiations Update". UK Parliament. from the original on 23 April 2024. Retrieved 23 April 2024.
5. Trevelyan, Anne-Marie (12 May 2022). "India Trade Negotiations: Update". UK Parliament. from the original on 23 April 2024. Retrieved 23 April 2024.
6. Trevelyan, Anne-Marie (28 June 2022). "India Trade Negotiations: Update". UK Parliament. from the original on 27 September 2022. Retrieved 23 April 2024.
7. Trevelyan, Anne-Marie (10 August 2022). "Letter to the House of Lords dated 10 August 2022". UK Parliament. Retrieved 23 April 2024.
8. Badenoch, Kemi (9 January 2023). "India Trade Negotiations: Update". UK Parliament. from the original on 23 April 2024. Retrieved 23 April 2024.
9. Badenoch, Kemi (7 March 2023). "India Trade Negotiations: Update". UK Parliament. from the original on 23 April 2024. Retrieved 23 April 2024.
10. "Joint outcome statement: UK-India round nine FTA negotiations". GOV.UK. 10 May 2023. from the original on 10 May 2023. Retrieved 23 April 2024.
11. Huddleston, Nigel (20 June 2023). "India Trade Negotiations: Update". UK Parliament. from the original on 23 April 2024. Retrieved 23 April 2024.
12. Huddleston, Nigel (20 June 2023). "Written Statements". UK Parliament. from the original on 23 April 2024. Retrieved 23 April 2024.
13. "Joint outcome statement: UK-India round twelve of FTA negotiations". GOV.UK. 1 September 2023. from the original on 1 September 2023. Retrieved 23 April 2024.
14. "Joint outcome statement: UK-India round thirteen of FTA negotiations". GOV.UK. 18 December 2023. from the original on 1 January 2024. Retrieved 18 December 2023.
15. "Prime Minister announces £1 billion of new UK-India trade". GOV.UK. 4 May 2021. Retrieved 15 December 2023.
16. "Johnson and Modi Pledge 'Quantum Leap' in U.K.-India Ties". Bloomberg. 4 May 2021. Retrieved 15 December 2023.
17. "UK-India Free Trade Agreement Negotiations". UK Parliament. 13 January 2022. Retrieved 15 December 2023.
18. "PM statement in India: 22 April 2022". GOV.UK. 22 April 2022. Retrieved 15 December 2023.
19. "Britain still wants free trade deal with India by Diwali". Reuters. 22 October 2022. Retrieved 15 December 2023.
20. "Scotching the trade deal with India?". BBC News. 13 October 2022. Retrieved 15 December 2023.
21. "India-UK free trade agreement: Diwali deadline no longer valid, negotiations still on". Mint. 14 October 2022. Retrieved 15 December 2023.
22. "UK reluctant to agree to India's demands for visas under proposed FTA: Sources". CNBC. 15 December 2023. Retrieved 15 December 2023.
23. "Indian delegation in UK for final push on free trade agreement". The Independent. 22 August 2023. from the original on 21 February 2024. Retrieved 21 February 2024.
24. "UK-India trade deal talks hit impasse over social security payments". Financial Times. 10 February 2024. from the original on 18 February 2024. Retrieved 5 March 2024.
25. "UK negotiators fly to India in last-ditch effort to seal free-trade deal". The Guardian. 5 March 2024. from the original on 5 March 2024. Retrieved 5 March 2024.
26. "Labour party aims to boost trade ties with India". Eastern Eye. 5 February 2024. from the original on 5 March 2024. Retrieved 5 March 2024.
27. "As India gets poll ready, FTA talks with UK in last leg". The Economic Times. 5 March 2024. from the original on 5 March 2024. Retrieved 5 March 2024.
28. "India-UK Trade Talks Set to End With Key Issues Unresolved". Bloomberg. 8 March 2024. from the original on 8 March 2024. Retrieved 8 March 2024.
29. "India signs $100bn free trade deal with four European nations". BBC News. 11 March 2024. from the original on 11 March 2024. Retrieved 11 March 2024.
30. Modi, Narendra [@narendramodi] (12 March 2024). "Had a good conversation with PM @RishiSunak. We reaffirmed our commitment to further strengthen the bilateral Comprehensive Strategic Partnership and work for early conclusion of a mutually beneficial Free Trade Agreement" (Tweet). from the original on 12 March 2024. Retrieved 12 March 2024 – via Twitter.
31. "PM Modi speaks to British PM Sunak, says will work for early conclusion of FTA". The New Indian Express. 12 March 2024. from the original on 12 March 2024. Retrieved 12 March 2024.
32. "UK-India trade deal talks put on ice until end of spring". Financial Times. 15 March 2024. from the original on 15 March 2024. Retrieved 15 March 2024.
33. "UK and India put free trade deal talks on ice until later this year". The Guardian. 15 March 2024. from the original on 15 March 2024. Retrieved 15 March 2024.
34. "India-UK FTA tops commerce ministry's 100-day agenda". Mint. 10 April 2024. from the original on 10 April 2024. Retrieved 11 April 2024.
35. Courea, Eleni (19 April 2024). "India seeks UK carbon tax exemption in free trade deal talks". The Guardian. from the original on 19 April 2024. Retrieved 19 April 2024.

External links

  Media related to Relations of India and the United Kingdom at Wikimedia Commons