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India seeks compensation for lost market as end of Brexit transition period approaches

A number of countries expressed their concerns about the uncertainty over an EU-UK trade deal at the recent market access committee meeting at the WTO. The Brexit transition deadline is December 31.

November 24, 2020 / 06:15 PM IST
Brexit

Brexit

At a recent World Trade Organization (WTO) meeting, India, along with Australia, Canada, China among others, have demanded that compensatory concessions be given to trade partners for lost market opportunities due to the terms of Brexit.

"There were concerns expressed by a number of countries over lack of clarity on terms of bilateral trade between the EU (European Union) and the UK in the absence of an agreement. The Brexit transition period ends on December 31. The countries have demanded compensatory concessions for lost market opportunities," a senior government official told Moneycontrol.

A number of countries expressed their concerns about the uncertainty over an EU-UK trade deal at the recent market access committee meeting at the WTO. The Brexit transition deadline is December 31.

EU is India's second-largest trading partner and the UK is one of the top trading partners amongst the big European nations. A change in terms of trade between the UK and the EU would have an impact on India too.  Indonesia, Mexico, New Zealand, Paraguay, the US and Uruguay are the other countries that have sought clarity on EU-UK trade post-December 31.

The proposed modifications to tariff rate quotas (TRQs) and how it would be shared out between the UK and the rest of the EU are a major area of concern. TRQs allow products to be imported at lower tariffs into the EU within a certain pre-capped limit. This also included the UK before Brexit. Post-Brexit, the distribution of TRQs between the two could impact the flexibility for other trading partners to use these quotas, thereby incurring commercial losses.

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The other nations said the EU and the UK must ensure that the access negotiated under most-favoured-nation quotas of the WTO doesn't get compromised. The EU assured that it would try and reach completion of discussions with other nations by the end of the year.

"The UK also said that it recognises the existing rights and its obligations with trading partners and is committed towards them," the official said.
Kamalika Ghosh
first published: Nov 24, 2020 06:15 pm

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