India and the United Kingdom have initiated weekly trade negotiations as both nations work to finalize a free trade agreement (FTA) in the near future. Speculation suggests the FTA could be signed by the end of October 2023, with UK Prime Minister Rishi Sunak possibly visiting India for the signing.
Sunil Bharthwal, India’s Commerce Secretary, confirmed the commencement of the weekly trade negotiations, stating that the 13th round of discussions is currently in progress. Negotiating teams are now meeting weekly, with the most recent round hosted in India after the previous session took place in London.
The upcoming FTA is generating significant interest and expectations. Kemi Badenoch, the UK’s Secretary of State for Business and Trade, discussed the negotiations in a recent interview with Mint. She acknowledged that the UK, with a relatively more open economy compared to India, might require more flexibility from the Indian side during the ongoing FTA negotiations. Badenoch’s visit to India was part of the G20 trade and investment summit in Jaipur and included discussions about the free trade agreement.
The India-UK FTA discussions have focused on several contentious elements of the agreement. Among them, Intellectual Property Rights (IPR), rules of origin, and Bilateral Investment Treaties (BIT) have been key topics. IPR negotiations are particularly crucial because India is the world’s largest supplier of generic drugs, constituting a substantial portion of the global supply. The affordability of generics is essential for India’s healthcare system and the well-being of its aging population. On the other side, the UK is a leader in life science innovation and is seeking robust protection of intellectual property rights.
One of the areas of concern is the issue of regulatory data protection. India has consistently held its ground on this matter, refusing to compromise. Regulatory data protection and data exclusivity have been long-standing demands from the European Union (EU) as well. India’s stance has been that these provisions are non-negotiable, reflecting the country’s commitment to ensuring affordable access to medicines for its population.
As both India and the UK move closer to signing the agreement, the uniqueness of this FTA has become more apparent. The deal is expected to be a game-changer for both nations and could serve as a model for future agreements.
In recent years, India has actively engaged in trade negotiations to strengthen its global economic ties. The country’s economy has been on a growth trajectory, and forging strong trade agreements is seen as a key driver for further development. An FTA with the UK would not only boost trade but also enhance bilateral relations and potentially serve as a foundation for collaboration in other sectors.
With the weekly negotiations ongoing, the focus will remain on resolving critical issues, particularly those related to IPR and rules of origin. As the negotiations continue, the hope is that both India and the UK will find common ground, leading to a comprehensive and mutually beneficial free trade agreement. The prospect of an FTA between India and the UK represents a significant opportunity for businesses and trade between the two countries, with potential far-reaching impacts on their respective economies.
