The India-U.K. Trade Deal: A Template for Future Engagements
UPSC Relevance
Prelims: International Relations (Bilateral Agreements, Free Trade Agreements - FTAs), Indian Economy (Foreign Trade, Tariff lines, Movement of Professionals - Mode 4).
Mains:
GS Paper 2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
GS Paper 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Key Highlights from the News
India and the United Kingdom (UK) signed a Comprehensive Economic and Trade Agreement (CETA/FTA).
This agreement is an example of the "give and take" between the two countries.
The UK will allow duty-free access for 99% of India's products.
India will grant duty-free access for 90% of UK products. However, key agricultural products such as dairy products, apples, and edible oils have been excluded from the agreement.
The UK did not provide significant concessions for the easy "movement of professionals," including IT professionals, which was a major demand from India. Only a small quota of 1,800 visas was allowed for individuals like yoga and music teachers.
Although India will reduce tariffs on vehicle imports, this will be subject to a "graded quota" and will be phased in over the next ten years.
The article states that this agreement will serve as a "template for future deals" for India's upcoming trade negotiations with the European Union and the United States.
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