India, UK resume talks in bid to clinch FTA amid US tariff concerns

British trade minister Jonathan Reynolds met his Indian counterpart Piyush Goyal in London on Friday in an unscheduled resumption of talks as the countries seek to clinch a free trade deal.

Goyal returned to London for the talks, a British government spokesperson said, after a two-day visit earlier in the week ended without a final agreement.

Talks between Britain and India on a free trade agreement started in January 2022, as Britain sought to forge an independent trade policy after leaving the European Union.

After talks were delayed by a churn in British politics, with four different prime ministers in office since negotiations began, the Labour government that took power last year looked set to clinch a deal imminently.

 

The British and Indian governments each said that talks earlier in the week had been constructive.

Businesses briefed on the outline of a deal on Tuesday said only a few issues remained outstanding, according to sources familiar with the discussions. Areas such as the reduction of tariffs on whisky and autos had been finalised, they added.

Britain and India are also looking to conclude separate treaties on investment and social security, negotiated alongside the free-trade agreement.  Under the proposed investment treaty, companies will have protections that allow them to sue either government if they believe policy changes unfairly harm their investments, two sources told Reuters.

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