Next round of talks for India-UK trade agreement to be held in June

Synopsis
"The effort is to expedite the negotiations...(There was a) Diwali deadline (to conclude the talks
last year) was given, but for variety of reasons, it was extended. But the effort on both sides is
to conclude it at the earliest," he told reporters here. The tenth round of negotiation is from
June 5-9 here and "hopefully we will make some substantial progress during that time," he
added.

India and the UK will hold their next round of talks for the proposed free trade agreement in
June here and both the sides are aiming to conclude the negotiations at the earliest, a senior
government official said on Monday. Director General of Foreign Trade (DGFT) Santosh Kumar
Saranagi said that trade negotiations are a matter of give and take and this has nothing to do
with elections in individual countries.
There will be general elections in India next year.
"The effort is to expedite the negotiations...(There was a) Diwali deadline (to conclude the talks
last year) was given, but for variety of reasons, it was extended. But the effort on both sides is
to conclude it at the earliest," he told reporters here.

The tenth round of negotiation is from June 5-9 here and "hopefully we will make some
substantial progress during that time," he added.

The negotiations were launched on January 13, 2021. The talks cover 26 policy areas/chapters.

Investment is being negotiated as a separate agreement -- Bilateral Investment Treaty -- which

would be concluded simultaneously with the India-UK free trade agreement (FTA).

So far 13 chapters have been substantially closed for negotiations and regular meetings held at
higher levels to review the progress of talks and to resolve the outstanding issues.
On the G20 talks, he said the second Trade and Investment Working Group (TIWG) meeting is
now scheduled to be held on May 23-25 in Bengaluru.

In dedicated technical sessions, G20 delegates will deliberate on priority on WTO (World Trade
Organisation) reform along with key deliverables on identified priority issues on trade for
growth and prosperity, resilient global value chains, integrating MSMEs in global trade, and
efficient logistics for trade.
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Agreement between India and the UK for the establishment of a joint Economic
and Trade Committee
This Agreement is pursuant to India- UK Joint Declaration made in London by the prime
Ministers of India and the UK on 20th September 2004. The Declaration resolved to establish a
Ministerially led Joint Economic and Trade Committee (JETCO) to Further develop a strategic
economic relationship and develop business-led vehicles to enhance bilateral trade and
investment.
1. Accordingly, it is agreed as under: -
a. India and the United Kingdom hereby establish a Joint Economic and Trade
Committee
b. The committee will be co-chaired by the Minister for Commerce and Industry of
the Government of India and the Secretary of State for Trade and Industry of the
Government of the United Kingdom

2. Against the background of existing or planned EU/India initiatives in trade and

investment, the Commitee shell identify ways and means of increasing the scope of
economic cooperation, including expansion of bilateral trade and investing.

3. The Committee will meet once a year or as and when considered necessary, at a date
convenient to both the parties, alternatively in the United Kingdom and India.

4. The Committee will discuss specific issues and sectors of economic cooperation and
based on such decisions it may decide to constitute subsidiary Working Groups to deal
with such specific issue/ sectors. The terms of reference for such groups shall be decided
by mutual agreement.

5. The Committee will encourage business- led vehicles to enhance bilateral trade and
investment in traditional and non- traditional areas as identified by the Committee.

6. The agenda for each meeting will be agreed in advance by both parties. A preparatory
senior official meeting, to prepare the detailed agenda and draft recommendations for
the Ministerial session, may be convened.
 7. Both parties, taking into consideration the agenda of the meeting, will appoint the
members for each meeting of the Committee.

8. The Committee will maintain close contact with the concerned private sector
organisations in both countries and will invite business representatives to contribute
towards the agenda and, where appropriate, participate in its meetings.

9. The Commitee will interact with other bilateral mechanisms as required in accordance
with its Terms of reference to ensure coherence and synergy in bilateral interactions.

10. The Commitee will draw up agreed minutes of its proceedings, which shall include
recommendations for action, by both sides. A progress report on any recommendation
shall be submitted to the next Committe meeting.

11. To facilitate implementation of these recommendations, as interim meeting of senior

officials will be convened to review progress. It is envisaged that at least one such
interim meeting would take place between Ministerial meetings.

12. Either party may terminate this arrangement by sending a written communication to the
other party giving six months' notice in advance.

13. Nothing in the terms of reference of the Committee shall require the United Kingdom to
take any action which would be contrary to or inconsistent with its obligations as a
Member of the European Union and with the EU Common trade Policy, or with the
strategic partnership between the EU and India.

14. The Commitee will become operational immediately upon the singing of this Agreement.

https://commerce.gov.in/wp-content/uploads/2020/09/Agreement-between-India-and-
United-Kingdom-for-establishment-of-a-Joint-Economic-and-Trade-Committee.pdf

The India-UK Joint Economic and Trade Committee (JETCO) was established to further develop
the strategic economic relationship between the two countries. The Committee is co-chaired by
the Minister for Commerce and Industry of the Government of India and the Secretary of State
for International Trade of the Government of the United Kingdom.

The main objectives of JETCO are to:

  Identify ways and means of increasing the scope of economic cooperation, including
expansion of bilateral trade and investment;
 Discuss specific issues and sectors of economic cooperation and, based on such
decisions, it may decide to constitute subsidiary Working Groups to deal with such
specific issue/ sectors;
 Encourage business-led vehicles to enhance bilateral trade and investment in traditional
and non-traditional areas as identified by the Committee;
 Maintain close contact with the concerned private sector organisations in both
countries and will invite business representatives to contribute towards the agenda and,
where appropriate, participate in its meetings;
 Interact with other bilateral mechanisms as required in accordance with its Terms of
reference to ensure coherence and synergy in bilateral interactions;
 Draw up agreed minutes of its proceedings, which shall include recommendations for
action, by both sides. A progress report on any recommendation shall be submitted to
the next Committee meeting;
 To facilitate implementation of these recommendations, as interim meeting of senior
officials will be convened to review progress. It is envisaged that at least one such
interim meeting would take place between Ministerial meetings;
 Either party may terminate this arrangement by sending a written communication to the
other party giving six months' notice in advance.

JETCO has met regularly since its inception and has made significant progress in promoting
economic cooperation between India and the United Kingdom. The Committee has identified a
number of areas of potential cooperation, including:

 Trade and investment;

 Science and technology;
 Education;
 Culture;
 Defence;
 Security;
 Energy;
 Climate change;
 Public health;
 Sustainable development.
JETCO has also played a key role in promoting business-led initiatives between India and the
United Kingdom. The Committee has supported a number of business delegations and has
helped to facilitate the establishment of joint ventures and partnerships.

JETCO is an important forum for dialogue and cooperation between India and the United
Kingdom. The Committee has made significant progress in promoting economic cooperation
between the two countries and is expected to continue to play a key role in the future.

UK trade summary statistics

Notes: figures in current prices, seasonally adjusted, on a balance of payments basis. Figures
include non-monetary gold and other precious metals.
Notes: figures in current prices, seasonally adjusted, on a balance of payments basis. Figures
include non-monetary gold and other precious metals.
Chart 4.1 shows the bifurcation of Imports into “Goods” and “Services”.
We can see that in February 2023, total imports are £906.5 billion in value terms and out of
which £641.4 billion amounts to Goods import and £265.1 billion amounts Services import by
UK.
Notes: figures in current prices, seasonally adjusted, on a balance of payments basis. Figures
include non-monetary gold and other precious metals.
As of September 2022, India ranked 11th in terms to exports Goods and Services to the UK. We
had £19.2 billion in terms on value and it made up 2.2% of UK’s total imports.

Notes: figures in current prices, seasonally adjusted, on a balance of payments basis.

‘Other business services’ comprises professional and management consulting services including
legal, accounting, management consulting, public relations, advertising, and market research;
technical and trade-related business services including architectural, engineering, and scientific
services; and research and development services.

Specifically for Services, we can see that “Business services”, “Travel services” and “Transport
services” are the top 3 services imported by the UK from the world.
https://www.gov.uk/government/statistics/uk-trade-in-numbers/uk-trade-in-numbers-web-
version
Things to consider

Even though we talk about such investment opportunities, they might not be possible in the
near future. UK has the highest rate of recession predicted (75%) and UK has recorded a high
inflation rate at 10.1%.
It will be difficult for the UK to invest in India due to these factors.