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Right now, both India and UK are trying to come to an agreement on intellectual property rights, rules of origin, and an investment treaty.
Read More: INDIA AND JAPAN INTEND TO WORK TOGETHER TO CONSTRUCT SEMICONDUCTORS AND SUPPLY CHAINS
Both sides have reached a broad agreement on the other heated topics of automobile tariffs and wines and spirits. However, nothing is settled until everyone agrees on everything.
When it comes to cars, the UK wants India to lower the high import taxes of 100% and the high spirits taxes of 150%. India also wants to change the rules about how goods are put into the category so that its wines and spirits can be sold in the UK.
The Indian industry wants more opportunities for its skilled workers to work in the UK, while the UK wants more chances for its services to be used in the Indian market.
The UK has asked that its service businesses be treated like national businesses and that its workers are given more freedom to work in India. To get national service, a business has to follow the same rules as other businesses in the same area.
On rules of origin, both countries are talking about how much value should be added to each product in each country for it to be eligible for lower taxes under the FTA. This is so that third countries can’t use the FTA as a way to put their goods in either country. India has usually agreed to a single number in its FTAs with other countries, but the UK seeks various addition standards for different goods.
The Department of Economic Affairs is in charge of the talks about the trade treaty that will be signed at the same time as the FTA. In these kinds of talks, India uses its model Bilateral Investment Treaty as a guide. The question being talked about with the UK is which courts will be in charge if there is a disagreement over an investment.
The talks on the FTA began in January 2021. It is one of the most complicated agreements India is working on, and it is also the most complete agreement India has tried to make with a developed country.
There are 26 chapters, or policy topics, that are being talked about. The official said that 19 of the 26 parts were no longer open for talks.
Recently, the 11th round of FTA talks came to an end in London. Both the Minister of Commerce and Industry, Piyush Goyal, and the Secretary of Commerce, Sunil Barthwal, went to London during the talks to give them a push.
In 2022-23, India sent the UK $11.4 billion worth of goods, which was a 9.03% rise from the previous year. At the same time, imports from India went up 27% to $8.9 billion. In FY23, FDI from the UK was $1.7 billion, up from $1.6 billion the year before. India’s major exports to the UK are ready-made clothes and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transportation equipment, spices, machinery and instruments, pharmaceuticals and marine products.
Precious and semiprecious stones, ores and metal scraps, engineering items, non-electronic professional equipment, chemicals, machinery, and other machinery make up the bulk of the United Kingdom’s exports.
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