Page 2 - Free Trade Pact

India, EU begin 13th round of trade talks, hope to fast-track deal

India and the European Union (EU) on Monday started the next round of negotiations for the proposed free trade agreement (FTA), an official said. After the 13th round of talks, European Commissioner for Trade Maros Sefcovic will visit India on September 12 to take stock of the progress of negotiations with Commerce and Industry Minister Piyush Goyal, the official said. As there is a deadline to conclude the talks by the end of this year, this round of talks is important. The 12th round of talks concluded in Brussels. In June 2022, India and the 27-nation EU bloc resumed negotiations for a comprehensive FTA, an investment protection agreement and a pact on geographical indications after a gap of over eight years. It stalled in 2013 due to differences on the level of opening up of the markets. On February 28, PM Narendra Modi and the European Commission president agreed to seal a much-awaited free trade deal by the end of this year. Besides demanding significant duty cuts in automo

Rolls-Royce still vying to codevelop India's stealth jet engine: Alex Zino

Rolls-Royce says India-UK Comprehensive Economic and Trade Agreement will positively impact both its civil aviation and defence businesses in India

India likely to forego ₹4,060 crore in first year of UK trade pact: GTRI

India is expected to forego customs revenue of Rs 4,060 crore in the first year of the free trade agreement with the UK, as tariffs are reduced or eliminated on a wide range of goods, think tank Global Trade Research Initiative (GTRI) said on Monday. The calculation is based on the current import figures from the UK. By the tenth year, it said, as tariff elimination phases-in more broadly, the annual loss is projected to rise to Rs 6,345 crore or around British Pound 574 million, based on FY2025 trade volumes. The India-UK free trade agreement, which was signed on July 24, will lead to a loss of customs revenue for both the countries, as tariffs are reduced or eliminated on a wide range of goods, GTRI added. India imported USD 8.6 billion worth of goods from the UK in 2024-25. Industrial products make up the bulk of these imports and face a weighted average tariff of 9.2 per cent. Most agricultural products, subject to much higher average tariffs of 64.3 per cent, were excluded f

Govt offers duty relief on certain UK goods, sensitive sectors excluded

India has granted tariff concessions to a wide range of British goods under the recently signed free trade agreement (FTA), including pastries, pet food, cosmetics and microwave ovens, while keeping sensitive sectors out to safeguard domestic interests. The comprehensive economic and trade agreement (CETA), which was signed on July 24, also offers duty-free access to UK products such as cakes, protein concentrates, dog and cat food, soaps, shaving cream, detergents, and home appliances like air conditioners and washing machines. However, the concessions are phased across sectors to give Indian industry sufficient time to prepare for enhanced competition from UK firms. The agreement will come into force in about a year as it requires approval from the British Parliament. According to the analysis of think tank GTRI, India has committed to reducing or eliminating import tariffs on nearly 90 per cent of goods originating from the United Kingdom. "The agreement includes phased concess

India-UK deal to help boost chemical exports, manufacturing: CHEMEXCIL

The free trade agreement between India and the UK will help boost the country's chemical exports and domestic manufacturing as a number of product categories from the segment will enjoy duty-free access in Britain, CHEMEXCIL said on Sunday. Chemicals exporters body CHEMEXCIL (Basic Chemicals, Cosmetics and Dyes Export Promotion Council) said that under the trade agreement, more than 1,000 tariff lines (or product categories) from the chemicals sectors are granted zero-duty access to the UK market. This includes key product categories such as organic chemicals, agrochemicals, cosmetics toiletries, essential oil, speciality chemicals, and petrochemicals, CHEMEXCIL Chairman Satish Wagh said. With a 12.4 per cent contribution to the total trade agreement tariff lines, the chemical sector is among the largest beneficiaries of this agreement, strengthening its position in trade policy and classification, he said. India's current chemical exports to the UK stand at USD 570.32 million, ...

India liquor stocks rally on UK trade deal, premium spirits focus

Shares of India's Tilaknagar Industries Ltd and Allied Blenders & Distillers Ltd have surged more than 40 per cent since late April

Govt opposes EU plan for capital flow checks, cites sovereignty issues

The proposal, unusual in most free trade agreements, has raised concerns in New Delhi over limiting its ability to act unilaterally during crises

India, UK likely to sign free trade agreement next week after review

India and UK are expected to sign FTA next week; pact expected to cut tariffs, boost exports, and benefit sectors like textiles, whisky, while easing social security rules for Indian professionals

Looking to fast-track trade pact review talks with Asean: Piyush Goyal

Commerce and Industry Minister Piyush Goyal on Thursday said discussions are underway with ASEAN to review the existing trade pact, and he is looking forward to fast-track the negotiations. The issue figured during the meeting between Goyal and his Malaysian counterpart T Zafrul Aziz. "Had a productive meeting with @Tzafrul_Aziz, Malaysian Minister of Investment, Trade & Industry. Malaysia is India's permanent coordinator from ASEAN on economic matters," Goyal said in a post on X. The ministers discussed the ongoing review of ASEAN India Trade of Goods Agreement (AITIGA) and addressing its challenges therein. "Looking forward to fast-tracking discussions with ASEAN Member States to ensure fair trade and balanced growth," he said adding, "We also discussed furthering discussions on the Comprehensive Economic Cooperation Agreement (CECA) between both the countries". The remarks assume significance as the review talks are progressing slow. The review of the agreement is a ...

India must protect farmers, digital ecosystem in trade pact with US: GTRI

Any trade agreement with the US must not be politically driven or one-sided and India should protect its farmers, digital ecosystem, and policy space, economic think tank GTRI said on Friday. With India's chief trade negotiator in Washington DC and the clock ticking, the next few days could determine whether India and the US settle for a limited mini-deal or walk away from the negotiating table - at least for now, the Global Trade Research Initiative (GTRI) said. The two sides are looking at finalising an interim trade pact before July 9, as it marks the end of US President Donald Trump's 90-day suspension of the country-specific tariffs, originally announced on April 2. "The more likely outcome is a limited trade pact - styled after the US-UK mini trade deal announced on May 8," GTRI Founder Ajay Srivastava said, adding, "any trade deal with the US must not be politically driven or one-sided, it must protect our farmers, our digital ecosystem, and our sovereign regulatory ...

'US-UK FTA can serve as launch pad for Indian firms to enter US mkt'

MEA's Dammu Ravi says Indian firms can leverage the US-UK trade pact to expand into American markets, but cautions on supply chain gaps and infrastructure hurdles

India reserves right to retaliate if UK carbon tax hits exports: Official

The India-UK free trade agreement has no provision to counter Britain's proposed carbon tax, but amid uncertainty and absence of UK legislation, New Delhi has preserved its right to retaliate or rebalance concessions, if future measures impact domestic exports, an official said. The UK government in December 2023 decided to implement its Carbon Border Adjustment Mechanism (CBAM) starting 2027. According to economic think tank GTRI, India's exports worth USD 775 million to the UK may be impacted due to Britain's decision to introduce carbon tax on products such as iron and steel, aluminium, fertiliser and cement, from 2027. The official said that the free trade agreement (FTA) with the UK has no provisions to counter CBAM, which has the potential to nullify the concessions offered by Britain to India. "Because of current uncertainty and no legislation in place, there is an understanding that India will/ has preserved its right to retaliate or rebalance the concessions (in future),"

India, South Africa discuss preferential trade pact through SACU bloc

SACU nations include South Africa, Namibia, Botswana, Lesotho and Eswatini and is the world's oldest customs union, over a century old

India should reconsider negotiating a comprehensive FTA with the US: GTRI

India should reconsider negotiating a comprehensive free trade agreement (FTA) with the US as it could pose challenges to domestic sectors like agriculture, automobiles and pharmaceuticals, think tank GTRI said on Thursday. It cautioned that under trade pact with the US, many of Washington's demands such as weakening India's minimum price support system for farmers, allowing genetically modified food imports, lowering agricultural tariffs, changing patent laws to extend drug monopolies, and letting American e-commerce giants sell directly to consumers pose major risks. The risks include harm to farmer incomes, food security, biodiversity, public health, and the survival of small retailers, the Global Trade Research Initiative (GTRI) said. "Reducing tariffs on farm goods could affect the livelihoods of hundreds of millions, while slashing duties on cars could undercut a sector that accounts for nearly a third of India's manufacturing output. The collapse of Australia's car industry .

India's best interests will be kept in mind while inking trade pacts: Goyal

India's best interests will be kept in mind while inking trade pacts, Union Commerce Minister Piyush Goyal assured businesses on Tuesday. "India First is our mantra, is our guiding principle," Goyal told reporters on the sidelines of an event here. Declining to divulge the exact contours of the ongoing trade talks with the US, Goyal said India is in talks with many countries. "They continue to go on very smoothly in a positive direction and all is well," he added. "We are covering a very wide array of subjects, a very wide array of products and I can assure business persons across the country that we are keeping the best interests of India at the forefront of our discussions," Goyal said. The bilateral trade agreement with the US will power the economy towards becoming a developed nation by 2047 when the country celebrates 100 years of independence, he said. Speaking at the Dubai India business forum here, Goyal said India is mulling to start an Indian Institute of Management and

Free trade deal may get delayed as Australia approaches 2025 elections

Both nations had signed the interim trade deal, also known as India-Australia ECTA that came into force on December 29, 2022

India, UK to relaunch FTA talks in 2025, 'address remaining issues'

Announcement follows first meeting between Prime Minister Modi and his British counterpart during G-20 summit in Brazil

India looks to establish standardised negotiation process for trade deals

The government is seeking to revive a decade-old proposal to streamline FTA negotiations, especially in the backdrop of imbalanced deals with a couple of trade partners

New trade strategy could help India shift from 'no' to 'yes' in deals

Indian officials still tend to think of trade as a zero-sum game, with tariffs as the only real levers

Piyush Goyal suggests Bimstec group members to relook proposed FTA

Commerce and Industry Minister Piyush Goyal on Wednesday suggested the seven member countries of the BIMSTEC bloc to relook at the progress of Free Trade Agreement talks which are moving at a very slow pace. He said that the members can think of negotiating a preferential trade agreement instead of a full-fledged free trade pact. BIMSTEC stands for the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation. Its seven members are five South Asian countries (Bangladesh, Bhutan, Nepal, India, and Sri Lanka) and two Southeast Asian countries (Myanmar and Thailand). The bloc has been negotiating a proposed Free Trade Agreement (FTA) since 2004. So far over 20 rounds of talks have been held. The last one was held in 2018. "I would like to raise a few fundamental issues about where we stand and what are the possibilities of making this FTA a reality," Goyal said here at CIIs BIMSTEC Business Summit 2024. He said that so far 22 rounds of talks have been held for t