FTA with UK a win-win for both countries: MP Arora

Ludhiana, December 20, 2023: The Union Minister of State for Commerce and Industry Anupriya Patel has answered a question on Free-Trade Agreement with UK in the ongoing winter session of Rajya Sabha.

The question was asked by MP (Rajya Sabha) from Ludhiana Sanjeev Arora. 

Arora had asked about the status of Free Trade Agreement (FTA) with UK; and the main bottlenecks in finalizing the same.

In her reply, the Minister stated that India and the UK are negotiating a Free Trade Agreement (FTA) since 13th January, 2022. 12 rounds of negotiations have been held so far and the 13th round of negotiations began on 18th September 2023. 

Further mentioning in her reply, the Minister stated that the negotiations have progressed well, and both sides are rigorously engaged to work out a trade deal that is fair, equitable and mutually beneficial, which takes into consideration the ambitions and sensitivities of both the sides.

When signed, the India-UK FTA will serve as a template for an agreement with India’s second-largest trade partner, the European Union (EU). Breaking from the look east policy that saw widening deficits with Japan, South Korea, and ASEAN countries, the government is counting on economic integration with Western and African nations to fuel export growth.

A trade deal with India is crucial for the UK as the ruling Conservatives face a tough election in early 2025. The insecurities that spurred the vote for Brexit is a reason the UK is hesitant to offer work permits to Indian service sector workers under the FTA — however, the size and potential of the Indian market offers London a way to compensate for the loss of access to the European Single Market.

India’s labor-intensive sectors such as apparel and gems and jewelry have seen a steep decline in market share over the last five years. Indian textile exports face tariffs walls as high as 10% in the UK; a trade deal could put India on par with competition such as Bangladesh and revive textile exports. 

Giving this information in a statement here today, Arora hoped that once the Free-Trade Agreement is completed between the two nations almost all the states of the country, including Punjab, will be benefitted. He hoped that FTA would give another boost to industry and the economy of Punjab.