We’ll Have Speed, Not Haste: Goyal as India & UK Resume FTA Talks
The Union Minister of Commerce, Piyush Goyal, recently announced that India and the United Kingdom have decided to restart negotiations for a free-trade agreement (FTA). The decision was made after Goyal met with UK Business and Trade Secretary, Jonathan Reynolds. When asked if an FTA could be expected by this year, Goyal emphasized the importance of concluding a good agreement, stating, “It’s never too late to conclude a good agreement… We’ll have speed but not haste.”
The resumption of FTA talks between India and the UK is a significant development in the world of international trade. The two countries have been engaged in negotiations for a free-trade agreement since 2017, but the talks were put on hold in 2020 due to the COVID-19 pandemic. The restart of negotiations comes at a time when both countries are looking to strengthen their economic ties and expand their trade relations.
The FTA between India and the UK has the potential to significantly boost bilateral trade between the two countries. India is one of the fastest-growing major economies in the world, and the UK is a significant market for Indian goods and services. In 2020-21, India’s exports to the UK stood at around $7.5 billion, while the UK’s exports to India stood at around $5.8 billion.
The FTA is expected to create new opportunities for businesses in both countries, particularly in the areas of goods, services, and investment. The agreement is also expected to simplify customs procedures and reduce tariffs, making it easier for companies to trade with each other.
Goyal’s emphasis on concluding a good agreement rather than rushing to meet a deadline is a wise approach. A good FTA should be one that benefits both countries and their businesses, and that requires careful negotiation and consideration.
In recent years, India has been actively pursuing free-trade agreements with various countries, including the United States, Australia, and the European Union. The FTA with the UK is an important addition to this list, and it has the potential to further solidify India’s position as a major player in the global economy.
The FTA talks between India and the UK are expected to cover a range of issues, including goods, services, investment, and intellectual property. The two countries are also expected to discuss areas such as e-commerce, pharmaceuticals, and automobiles.
One of the key areas of focus for the FTA is likely to be the reduction of tariffs and non-tariff barriers to trade. The UK is a significant market for Indian goods, and Indian businesses are looking for ways to increase their exports to the country. The FTA could help to reduce tariffs on Indian goods such as textiles, leather, and gems and jewelry, making it easier for Indian businesses to compete in the UK market.
The FTA could also help to increase investment flows between the two countries. India is a significant destination for foreign investment, and the UK is one of the country’s largest foreign investors. The FTA could help to increase investment flows by providing greater clarity and certainty for investors, and by reducing barriers to investment.
In conclusion, the resumption of FTA talks between India and the UK is a significant development in the world of international trade. The two countries have a long history of trade and economic cooperation, and the FTA has the potential to further strengthen their economic ties.
As Goyal emphasized, the focus should be on concluding a good agreement rather than rushing to meet a deadline. A good FTA should benefit both countries and their businesses, and that requires careful negotiation and consideration.
The FTA talks between India and the UK are expected to be a complex and challenging process, but the potential benefits make it worthwhile. With careful negotiation and consideration, the two countries can conclude a good agreement that benefits both sides and helps to strengthen their economic ties.
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