India's commerce and industry minister Piyush Goyal was recently in the UK to push ahead with talks, following his meeting with EU trade commissioner Valdis Dombrovskis, who said that the two partners will formally launch negotiations soon as they move ahead with the next round of free trade agreements (FTAs).
Apart from this, India has signed two trade agreements in recent months, with UAE and Australia, shunning its decade-long reluctance to enter into bilateral deals. Through these treaties, the government is hoping to boost trade and drive investments into the economy. The two trade agreements, along with those with Canada and Israel, are currently on the table. Switzerland is also suggesting that stalled negotiations for an agreement with the European Free Trade Association (EFTA) should be revived. Apart from Switzerland, EFTA includes Norway, Iceland and Liechtenstein. The UK is the next focus with British Prime Minister Boris Johnson setting a Diwali deadline for the talks to conclude. Businesses too are keen for the deal to come through quickly. “They are trying to do something that is not just fast but also comprehensive, which also includes digital and other areas,” said Kevin McCole, managing director, UK India Business Council (UKIBC). According to Kevin there were high hopes from the Indian side, that the UK will reduce tariffs on textiles, which will improve their competitiveness with respect to Bangladesh, Sri Lanka and Vietnam. From the UK side, much focus is on very high tariffs on automotive and alcohol and Scotch, given that tariffs are at 150%, McCole added.
