India-UK yet to iron out differences on IPR, rules of origin in FTA talks

India UK

India and the UK are yet to iron out their differences on intellectual property rights as well as rules of origin in the ongoing free trade agreement negotiations, commerce ministry officials said.

While discussions on 14 of the 26 chapters concluded at the last round of negotiations on June 5-9, there are at least five 5 chapters where issues persist, the officials said.

"Discussions related to IPR, rules of origin, services sector, labour and environment are facing some issues," an official said. However, the ministry is hopeful of resolving these chapters soon, the official added.

"UK FTA is the most complex FTA India will sign. This is also the most comprehensive FTA India will have with a developed country. It will pave the way for other such agreements," commerce secretary Sunil Barthwal said during the release of trade data on July 14.

Negotiations on the India-UK FTA have merely crossed the halfway point and India has missed its internal deadline of closing the talks by March 2023. Of the 26 chapters to be negotiated, only 14 have been closed so far. The 11th round of negotiation is currently underway in UK from July 10- 19

Stumbling block

The UK House of Commons said in a recent report that India’s insistence on data localisation is a major stumbling block to the FTA. The UK wants free data flow between the two countries. Issues related to visas, carbon tax and Indian tariffs on automobile shipments have also been matters of contention.

India and the UK have been negotiating an FTA since January last year, with the goal of signing a comprehensive pact that is expected to significantly enhance their bilateral trading relationship. The initial deadline for completion of the negotiations was Diwali (October 24) last year.

India’s merchandise exports to the UK totalled $10 billion during the April 2022 to February 2023 period, accounting for 2.5 percent of the country’s total exports. Merchandise imports from the UK stood at $8 billion during this period, with a share of 1.3 percent of all imports, data from the Ministry of Commerce and Industry showed. The UK was India’s 15th top trade partner during this period.

Through the agreement, India stands to boost exports of pharmaceuticals, textiles, food and beverages, tobacco, leather and footwear, and agricultural items like rice to the UK, and raise prospects for digital services.

The UK seeks access for its chemicals, motor vehicles, electrical equipment, medical devices and spirits.