Piyush Goyal to visit UK for FTA negotiations, review progress of TEPA

Commerce and Industry minister Piyush Goyal will embark on a two-day visit to the United Kingdom (UK) from Monday to assess the progress of the Free Trade Agreement (FTA) between the two nations.

India and the UK began negotiations on the FTA in January 2022, and set a Diwali deadline last year for the trade pact.

The deadline was missed as both sides were not able to iron out differences in providing greater market access for certain goods and services.

“The visit comes at a crucial juncture, as both India and the UK are committed to expanding their economic ties and exploring avenues for enhanced bilateral trade. With the FTA negotiations gaining momentum, the visit aims to further propel the discussions and pave the way for a comprehensive and mutually beneficial agreement that would drive economic growth and strengthen ties between the two nations,” an official statement said on Sunday.

Goyal will meet the UK’s Secretary of State for International Trade Kemi Badenoch, as well as representatives from the industry. 

“These meetings will provide an opportunity to discuss the key priorities and objectives of the FTA negotiations, with a focus on addressing trade barriers, promoting investments, and fostering greater cooperation in areas such as technology, innovation, and intellectual property rights,” the official statement said.

According to the progress of the proposed trade deal shared by the department of commerce last month, out of 26 policy areas or chapters, 14 chapters were substantially closed for negotiations, while significant progress was made in other chapters. 

In May, government officials said that regular meetings are being held at higher levels to review the progress, resolve the outstanding issues and discuss the way forward in negotiations.

Both countries aim to conclude the negotiations at the earliest.

The UK is India’s 15th largest trade partner, with total trade at $20.36 billion in FY23.

Goyal will also meet ministers from the European Free Trade Association (EFTA) countries to review progress of the Trade and Economic Partnership Agreement (TEPA).

EFTA nations comprise Iceland, Switzerland, Norway and Liechtenstein.

“The TEPA aims to enhance trade and economic cooperation between India and the EFTA member countries, fostering an environment conducive to increased investments, reduced trade barriers, and greater market access,” the statement added.

India and EFTA nations had launched negotiations on a broad based trade and investment agreement over 15 years ago.

As many as 13 rounds of negotiations were held, after which talks were put on hold in 2013.

Thereafter, talks resumed in 2016 and four more rounds of negotiations took place.