India-UK FTA talks resume | Trade deal will be win-win despite divergence, says expert

Free trade agreement (FTA) talks between India and the United Kingdom (UK) are set to resume Monday. Reports say the nations are struggling to make progress due to differences in some key tariff and investment protection rules.

The governments are not able to find a middle ground on the duties levied by India on car and liquor imports. Besides tariffs, the UK government is also pushing India to agree on a strong investment protection treaty.

According to Manoj Ladwa, Founder and CEO of India Inc Group, there are areas of divergence but a trade deal will be a win-win for both countries.

"A very positive round of talks concluded a few days ago and the next set of talks are due to start around the 5th of June. There will be areas of divergence but ultimately a free trade agreement between the two nations will be a win-win for both countries," Ladwa said.

He added that no issue is insurmountable when there's a willingness on both sides to conclude the deal.

"Issues of whisky and car tariffs have been on the table for some time now. The UK has made its position clear on these areas. But both sides are working hard to come to some sort of understanding on those issues. As far as investment protection is concerned, India's position is being well-noted in the UK that there are existing protocols and laws that do protect investments. So there is a niggling issue but it is something which I don't think is insurmountable when there is willingness on both sides to conclude as quickly as possible," Ladwa said.

The 10th round of negotiations is scheduled from June 5-9, 2023, and has been ongoing since January 2021. According to Director General of Foreign Trade Santosh Kumar Sarangi, a fifth round of talks between India and the European Union is due June 19-23.