India-UK FTA Talks Hit Roadblock: Report

New Delhi, Oct 3 (KNN) The ongoing discussion between India and the UK for a potential free trade agreement (FTA) could hit a roadblock as Indian industries are unwilling to offer import duty concessions to British manufacturers without London allowing easier mobility for Indian professionals, people with direct knowledge of the talks said on Monday, reported HT.

Currently both the countries are deliberating on the matter at the 13th round of FTA negotiations. Around 19 out of 26 chapters having been resolved in the past 12 rounds.

If business mobility – or easier temporary movement of Indian professionals to the UK for business purposes – is taken out of the free trade agreement (FTA) negotiations, there won’t be any significant gain for India as most Indian goods (more than 60% of total merchandise) already have duty-free access to the UK market, and most of the other items attract a low tariff of 5%, the people told HT requesting anonymity.

According to an information note of the UK’s Department for International Trade, the simple average tariff on goods imported into Britain from India is 4.2%, compared to 14.6% simple average tariff on the UK’s exports to India.

“The majority of product lines (66%) on Indian exports to the UK face no tariffs. In comparison, only 3% of product lines on UK exports to India can enter tariff free,” it said. Besides, India has a very high import duty on automobiles (100%) and whisky (150%).

“While India is willing to reduce duties on automobiles and liquor imported from the UK – a main demand of London – it should be a calibrated reduction and only if Britain agrees to reciprocate in terms of business mobility,” one of the people said on condition of anonymity.

“Both sides have taken a hard line on business mobility. New Delhi wants the UK to grant temporary visas to make it easier for Indian businesspersons to work in Britain, but London insists this matter falls within the remit of the home ministry, and hence is not part of trade negotiations,” the second person said.  (KNN Bureau)