Government sources have indicated that the United Kingdom (UK) is reluctant to agree to India’s demands for visas for professionals under the proposed Free Trade Agreement (FTA) as negotiations remain stuck on several sticky issues. Sources added that concerns about migration and the perpetuity of a policy once formulated in the FTA are possibly driving the UK’s reluctance to agree with India’s demands.
Migration within the European Union (EU) was one of the concerns which led the UK to opt out of the union.
India and the UK have been negotiating an FTA since January 13, 2022. 12 rounds of negotiations have been held so far with the 13th round beginning on September 18, 2023.
The government has told the Parliament that negotiations have progressed well, and both sides are rigorously engaged to work out a trade deal that is fair, equitable, and mutually beneficial. The deal, as per the government, will take into consideration the ambitions and sensitivities of both sides. 21 out of 26 policy areas have been finalized by the end of 2023.
Even as negotiators from both sides are engaged in rigorous talks on multiple fronts, several contentious issues are keeping the negotiations from being concluded.
The UK is seeking duty concessions on its Electric Vehicles (EV) and scotch whisky, with the Indian alcohol industry opposing a level-playing field with its British counterpart products. Other pending contentious issues include Rules of Origin and a Bilateral Investment Treaty (BIT). While India’s External Affairs Minister (EAM) S Jaishankar is hopeful that a mutually beneficial “landing point” will soon be found, both nations remain resolute in ensuring a deal that will benefit their respective industries.
