India-UK FTA Talks Moving 'Fast', Good Progress On Rules Of Origin, Bilateral Treaty: Commerce Secretary

This comes as 12 rounds of talks on the FTA have been completed and the 13th round is set to start from September 18. Rules of origin and bilateral investment treaty are among the contested issues.

Earlier this month, UK Prime Minister Rishi Sunak said that the Free Trade Agreement (FTA) talks have made progress, and said there is a need for further efforts to reach a successful conclusion that benefits both nations.

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The Free Trade Agreement (FTA) negotiations between India and the UK are moving "very fast" with "good progress" on issues such as rules of origin and bilateral investment treaty (BIT), said Commerce Secretary Sunil Barthwal on Friday, reported PTI. The comments come as 12 rounds of talks on the FTA have been completed and the 13th round is set to start from September 18. The Commerce Secretary said that rules of origin and bilateral investment treaty were among the few issues where there were differences between the two sides.

"Many things are moving very fast. Like rules of origin and bilateral investment treaty, there is a good progress. Negotiations are happening... Towards the end of the deal, it is the difficult issues which are to be closed and therefore it requires more time and more deliberations," Commerce Secretary Sunil Barthwal said talking to the reporters, as per PTI's report. 

He also said that mobility is also one of the subjects that is being negotiated.

According to reports, the 'rules of origin' provision makes sure that minimal processing must occur within the FTA countries to classify the final manufactured product as originating from that country. This provision ensures that a country with an FTA with India cannot simply relabel goods from a third country and introduce them into the Indian market. Instead, they must undergo a specified value-addition process before exporting to India. These rules of origin norms serve to prevent the dumping of goods.

Additionally, the investment treaty is being negotiated as a separate agreement between India and the UK. These investment treaties play a crucial role in promoting and safeguarding investments made in each other's countries. The primary point of contention within this pact revolves around the dispute settlement mechanism.

Earlier this month, UK Prime Minister Rishi Sunak said that the Free Trade Agreement (FTA) talks have made progress, and said there is a need for further efforts to reach a successful conclusion that benefits both nations.

"I hope we can conclude a successful FTA. I think we can strengthen our security relationship as well. That's something that I've spoken to the Prime Minister about...The UK and India are two of the leading science technology superpowers of the world. And I think if we work more closely together, we can create jobs, create new businesses, and help solve some of the world's most pressing problems," Sunak told ANI.

The commerce ministry on Friday also informed regarding the India-EU (European Union) trade pact, the ministry said that five rounds of negotiations have already taken place, with the sixth scheduled for October 16-20 in Brussels, the report said. Additionally, discussions are underway concerning the EU's carbon tax issue within the framework of the Trade and Technology Council (TTC).

Regarding the progress of talks for the India-Australia Comprehensive Economic Cooperation Agreement (CECA), the ministry official said that significant headway has been made on various fronts, including government procurement, rules of origin, sports, innovation, labor, environment, and traditional knowledge. The 6th round of negotiations is nearing completion, and the next round is set to commence next month.

Furthermore, the ministry mentioned that the process of legal scrutiny is ongoing for the supply chain resilience agreement under the Indo-Pacific Economic Framework (IPEF). Domestic approval procedures for this agreement are also in progress. Currently, the Indian team is in Thailand for discussions regarding clean economy and fair economy agreements within the IPEF, the report noted.