Modi-Johnson meet likely to focus on talks to advance trade deal

Defence, high technology, energy security, and regional cooperation also likely to be taken up during discussions

Prime Minister Narendra Modi’s meeting with his United Kingdom equivalent Boris Johnson this week is expected to advance the negotiations on an interim trade deal, which is expected to be finalised between the two countries.

Apart from trade and investment, discussion on defence, high technology, energy security, and regional cooperation may be taken up between the two sides.

Johnson’s visit has been long overdue and was cancelled twice earlier due to the pandemic.

He will be in India on April 21-22, starting with Gujarat on Thursday, followed by a meeting with Modi on Friday in New Delhi.

This visit is crucial because it will take place amid the ongoing conflict in Eastern Europe, with Western nations, including the UK, trying to pressure India to condemn Russia for attacking Ukraine.

So far India’s stance has been neutral. 

“This week I’ll be travelling to India, to deepen the long-term partnership between our countries. As we face threats to our peace and prosperity from autocratic states, it is vital that democracies and friends stick together,” Johnson said in a tweet on Sunday.

In May last year, India and the UK launched an enhanced trade partnership, which will include negotiating a comprehensive free trade agreement and an interim trade agreement for delivering early gains.

The trade deal may resolve market access issues, boost exports, and strengthen the trade partnership between the two nations. “The visit of John­son will show the seriousness of entering into a trade agreement with India and it would mean that it will be easier for the Indian side to negotiate with the deal. However, the movement of personnel has been one of the key issues. How this issue plays out will be critical for us,” said Pradeep S Mehta, secretary general, CUTS International, a global public policy think tank.

One of India’s key demands has been easier access to visas for Indian students and skilled professionals. On the other hand, reduction in tariffs, including those on alcoholic spirits, food, and automotive, and in the health care sector, has been the key demands of the UK, with duty decrease on whiskey topping the list.

The countries launched negotiations on January 13. The first and second rounds took place in January and March, respectively, which saw discussion on things such as investment, customs, technical barriers to trade, gender, and sustainability. The draft treaty text was shared and till now discussion in 64 separate sessions, covering 26 policy areas, has been completed.

The third round of negotiations will be hosted by India and is expected to kick-start next week. Completing an interim trade deal was agreed upon by the middle of the year, though an official date regarding that is yet to be announced. People aware of the matter said finalising a trade agreement with the UK might take some more time, unlike in the case of the UAE and Australia.

The interim agreement will include tariff liberalisation in 60-65 per cent of the traded goods, while the final deal will include more than 90 per cent of the items. Both countries have set an ambitious target of more than doubling bilateral trade by 2030. The UK is India’s seventh-largest export partner and the 17th largest trade partner, with trade valued at $16 billion during April-February 2021-22.