India hopes to conclude talks for three key trade deals — UK, Oman and the European Free Trade Association comprising Iceland, Liechtenstein, Norway and Switzerland, before general elections in the country, an Indian government official said.
There is pressure to wrap up talks before the Indian general elections in April or May 2024, the official said, adding that most of the issues around the rules of origin chapter for the Free Trade Agreement with UK have have been settled.
With negotiations for the India-Oman Comprehensive Economic Partnership Agreement (CEPA) largely concluded, authorities expect talks for the deal to close as early as January 2024. As for the UK-India FTA, the fourteenth round of talks is scheduled for next month.
Early December, Switzerland’s Ambassador to India, Ralf Heckner told media agency Press Trust of India, that the European Free Trade Association (EFTA) deal with the country is likely to be wrapped up before the 2024 general elections. The EFTA members are not part of the European Union (EU).
For the trade deal with Oman, the first round of negotiations took place in New Delhi on 27-29 November, 2023, while the second round was conducted in Muscat from 9-14 December. Talks on the text of most of the chapters have been concluded by both the sides, the commerce ministry said on December 15.
India-UK
Elaborating on the issues being discussed for the free trade deal with UK, the official said that while London's demand for a tariff cut on electric vehicles as part of the FTA is yet to be resolved, India has largely agreed on the duty concessions sought by UK on internal combustion engines.
The Indian government is mulling tariff rate quotas to meet the UK's demand for a reduction in import duties on EVs from Britain as part of the proposed trade deal between the two countries.
So far 13 rounds of talks have been concluded between the two countries on the free trade deal. The UK is India’s fifth largest export destination. There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.
The UK-India Business Council (UKIBC) on November 20 said the FTA negotiations between the two sides should conclude before the general elections due in both nations. UKIBC Managing Director Kevin McCole said that though the election date in the UK has not yet been fixed, the polls may be held between May and November 2024. There is a risk that talks may have to pause till the elections in India and the UK are over, he added.
Last month, Moneycontrol reported that India is aiming to conclude negotiations for the FTA with UK as early as January. Both nations have been working on clinching a trade pact for over 21 months now and has missed the original deadline of Diwali 2022 to sign the deal.
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