India-UK Free Trade Agreement (FTA) talks with the new UK government are expected to begin by the end of January, a government official said on Thursday.
Separately, the Ministry of Commerce and Industry, in a statement, said that the proposed FTA negotiations between India and the European Union (EU) require political guidance to reach a mutually beneficial trade agreement.
The renewed push for trade deals with the UK and the EU comes as India focuses on countries where huge export gains are expected, rather than pursuing deals with smaller countries that might offer more market access to a partner country.
To achieve the same, the commerce department is developing a Standard Operating Procedure (SOP) aimed at improving the negotiation processes for future trade agreements.
This follows several trade agreements, including the agreement with the UAE that came into effect in February 2022 and the one signed by the Association of Southeast Asian Nations (ASEAN) in 2010, which resulted in much higher imports compared to exports, raising concerns about existing capacities. violation of laws of origin.
“The FTA negotiations, after nine rounds of intense engagement, require political guidance to reach a mutually beneficial trade agreement,” the ministry said in a statement.
This follows a meeting between Commerce Minister Piyush Goyal and representatives of the European Commission on Thursday.
As the Carbon Border Adjustment Mechanism (CBAM) continues to be a sticking point in the India-EU negotiations, the minister, according to a statement, asserted that any sustainability talks should respect the principle of ‘Common But Differentiated Responsibilities (CBDR)’, and the implementation of such measures should consider of different development.
Goyal emphasized that the Indian economy is expected to grow at an annual rate of 7-8 percent, making it the third largest economy in the world in the next few years. Thereafter, rapid and robust growth is expected to allow India’s GDP to reach $35 trillion by 2047.
“Acknowledging the huge untapped economic potential, the European side emphasized that both sides will benefit greatly by integrating their economies and strengthening resilience in supply chains. The interaction also provided an opportunity to review progress on the India-EU Trade and Technology Council. India is the only country, apart from the United States, where the EU has such a mechanism,” the department added.
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