India-UK teams to iron out sticky issues in FTA meet
India and the UK will make a last-ditch attempt to iron out sticky issues and dust off a planned free trade agreement (FTA), two people aware of the matter said, in a race against time as India gears up for a general election.
Although the FTA talks are routinely described as being at an advanced stage, the people cited above said unresolved issues threaten to delay the signing until after the elections, expected in April-May.
“Though both sides are close to signing a deal, the inking of the deal could be pushed to after the upcoming polls if a consensus is not reached on certain issues, as there’s hardly any time and election dates could be announced anytime now,” one of the persons cited above said. A British delegation is currently in New Delhi for negotiations and the Indian side is hoping to push through with the unresolved issues, the other person said.
The commerce ministry did not respond to emailed queries.
Key sticking points include an Indian demand for visas and the right to mobility for its skilled professionals as well as duty-free access for certain Indian goods.
The UK’s demands include sharp cuts in Indian tariffs for products like Scotch whisky, the duty for which stands at an eyewatering 150%, electric vehicles and chocolates.
A spokesperson for the UK department for business and trade said: “We have always been clear we will only sign a deal that is fair, balanced and ultimately in the best interests of the British people and the economy. The UK and India continue to work towards an ambitious trade deal that works for both countries.”
For New Delhi, the talks appear to have become critical ahead of the announcement of dates for the general election. This announcement will trigger the application of the model code of conduct, effectively barring the government from announcing any new economic initiatives. The FTA’s journey has been fraught with delays and is now running more than a year past the initial deadline. Migration in particular is a sensitive subject in the UK since Brexit.