PMO To Take Final Call On Unresolved Issues In India-UK FTA Talks

New Delhi, Jan 22 (KNN) The final decision on unresolved issues in the India-UK Free Trade Agreement (FTA) negotiations is expected to rest with the Prime Minister's Office (PMO), according to sources.

With a focus on reaching a conclusion before the upcoming general elections, these unresolved issues encompass a variety of critical aspects, reported Businessline.

The sticking points include the liberalisation of business visas, regulations related to intellectual property rights, market access for whisky, automobiles, and financial services, as well as a social security pact.

“Negotiators from India and the UK have been holding intense talks in New Delhi since January 10, trying to narrow gaps, which are expected to continue. The Commerce Department is in close consultation with the PMO now, as a political call will need to be taken on the handful of remaining issues if the negotiations are to be concluded before the elections,” the source stated.

Both nations are eager to finalise the FTA under the current regimes, the source added, aiming to avoid the complications of extending discussions post-elections.

While negotiators have successfully concluded discussions on the majority of the 26 chapters in the India-UK FTA pact, certain pivotal matters continue to pose challenges.

India's crucial demand for the liberalisation of business visas, facing resistance from the UK, is of paramount significance. The increased allocation of business visas holds particular importance for Indian professionals, notably in the IT industry, and has been a consistent focal point in India's free trade pact negotiations.

New Delhi is also pressing for a social security pact with the UK to exempt its short-term workers from contributing to social security.

Additionally, India seeks assurance from the UK that the benefits derived from the FTA will not be undermined by the imposition of a future carbon tax, akin to the EU's Carbon Border Adjustment Mechanism (CBAM).

Divergence exists regarding the UK's desire for stringent intellectual property rights (IPR) regulations beyond the World Trade Organisation's TRIPs Agreement. India is resisting this stance, aiming to prevent the "ever-greening" of patents and potential threats to its generic producers.

Remaining issues include the duty cuts for Scotch whisky, automobiles, and auto parts, as demanded by the UK under the rules of origin, stipulating the minimum processing required in an FTA partner country for qualifying for duty cuts.

The resolution of these matters will play a crucial role in determining the fate of the India-UK FTA before the impending elections.

(KNN Bureau)