What Are The Free Trade Agreements (FTAs)? India-UK To Have Free Trade Deal By The End Of 2022

With the visit of the British PM Boris Johnson to India, the United Kingdom and India signed a new defence cooperation agreement on Friday and will look to complete a free trade deal by the end of the year, their leaders said after a meeting in New Delhi, according to Reuters report.

While avoiding the topics like Russia-Ukraine war, speaking after the bilateral meeting, Johnson said that “threats of autocratic coercion have grown” in the past year.

Calling India’s Prime Minister Narendra Modi his “khas dost” (dear friend), British PM Boris Johnson said that India and the United Kingdom are on path to sign a free-trade agreement by Diwali this year.

What are the Free trade agreements (FTAs)?

The FTAs are arrangements between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non tariff barriers on substantial trade between them. FTAs, normally cover trade in goods (such as agricultural or industrial products) or trade in services (such as banking, construction, trading etc.). FTAs can also cover other areas such as intellectual property rights (IPRS), investment, government procurement and competition policy, etc.

“As the next round of talks begins here next week, we’re telling our negotiators to get it done by Diwali. This could double our trade and investment by the end of the decade,” the British PM said after his meeting with PM Modi in New Delhi.

Reiterating the commitment, Prime Minister Modi said that he hoped to sign the pact by the end of the year as both the sides were working closely and making “good progress”. Citing the FTAs with UAE and Australia, he said that the negotiations for the one with the UK are being done at the “same speed” and with the “same commitment”.

On Ukraine, PM Modi, however, reiterated the call for a ceasefire to end the conflict via dialogue and diplomacy. “We called for immediate cessation of the conflict and stressed on dialogue and diplomacy to resolve the situation. We also reiterated the importance of respecting territorial integrity and sovereignty of all countries,” Modi added.

“It was great to see you at the G7. But since then, the threats of autocratic coercion have grown even further,” said the British PM, with PM Modi by his side.

Share on: