The conclusion of the India-UK free trade agreement is marked by Give and taken on several questions while the two countries have worked to conclude the context of the United States protectionist policies.
A key element of this is the problem around the adjustment mechanism of carbon borders, where India has reserved the right to retaliate or rebalance concessions in case it affects its exports to the future.
“This has been done because there is uncertainty and no legislation in place for the implementation of the CBAM to date,” said an official source. The British government is expected to implement carbon tax in 2027 to date.
Likewise, it was decided that the FTA would not solve problems such as short -term work visas for Indian students and the British wishes list for India to open legal services.
“We have agreed to remove our work visa on studies after studies instead of the United Kingdom abandoning its” legal services applicants, “said an official source.
Likewise, the sectors and sensitive goods have been excluded from the ALE. These include agriiary products such as dairy products, apples, cheese, oats, animals and vegetable oils where no advantage will be granted by India to the United Kingdom. Sensitive industrial goods such as plastics, diamonds, money, basic stations, smartphones, television tubes, optical fibers, optical fiber beams and cables are also excluded, and no advantage will be provided by India in the United Kingdom.
India and the United Kingdom on May 6 have announced that they had concluded talks on the FTA and the double convention contributions (DCC). A bilateral investment treaty is still under negotiation and will be signed later.
According to the British department for business and trade, India and the United Kingdom will now work together to finalize the legal text of the ALE and produce a usable and legally binding treaty. We will put an end to this process by signing the text of the treaty finished. “The DCC will come into force in parallel with the trade agreement,” he said.
The FTA aims to double bilateral trade from $ 60 billion to $ 120 billion by 2030.
