Reduction or removal of tariffs on whiskey and automotive products, and removal of barriers to trade in food and drink, services, and healthcare and medical device sectors are the objectives of the India-UK Enhanced Trade Partnership (ETP) that commerce and industry minister Piyush Goyal launched on Tuesday with his UK counterpart, Elizabeth Truss, secretary of state for international trade.
“It will enhance bilateral trade cooperation, reduce market entry barriers & boost job creation in both countries,” Goyal said in a tweet.
The two sides had decided earlier this year to launch an ETP to develop a roadmap that would lead to a potential comprehensive free trade agreement( FTA), including considerations on an interim pact on a preferential basis.
Bilateral trade and investment ties were a key subject of talks between Prime Minister Narendra Modi and his British counterpart Boris Johnson during a vitual summit held Tuesday.
“In this regard, it was great news that the ETP…removed barriers to trade in food and drink, services, and healthcare sectors. Non-tariff barriers on fruit and medical devices will be lowered,” the UK India Business Council (UKIBC) said in a statement.
It said there was also a commitment to deepen co-operation in educational services including the recognition of UK higher education qualifications, which will help Indian students to study and work more fluidly between the UK and India besides a pledge to work to remove barriers in the Indian legal services sector. The two sides have also announced GBP 1 billion of new UK-India trade and investment.
“It is also hugely encouraging that lowering or removing current tariffs such as those of up to 150% on whisky and up to 125% on automotive have been highlighted as objectives of the ETP,” the council said.
The ETP, part of a 10-year roadmap of bilateral co-operation, aims to double the annual trade between the UK and India by 2030.
In the year before the pandemic bilateral trade grew 10% to GBP24 billion.
“The ETP is a great opportunity to grow this rapidly, particularly in sectors such as food and drink, life science and healthcare, advanced engineering, energy, digital technology, defence, education, and legal, financial and professional services,” it said.
To make the ETP “future-proofed”, UKIBC said that alongside growth in goods trade, it expects significant trade growth to be in services, particularly the technology, digital, financial, and IP-rich services where the UK and India are globally competitive and where there is scope for far greater bilateral activity.
As per the council, the UK-India ETP and FTA can be a model for all trade deals that follow.
