In the world of international trade agreements, India and the UK have been making headlines. The proposed free trade agreement (FTA) between the two countries is on hold until after the UK general elections in July 2024. Key issues such as duties on electric vehicles, alcoholic beverages, and services need to be resolved for the agreement to move forward. The FTA discussions, which began in January 2022, cover 26 chapters including goods, services, investments, and intellectual property rights.
Meanwhile, talks between India and the European Union (EU) regarding a trade pact are ongoing, with a focus on areas like the carbon tax. The EU’s Carbon Border Adjustment Mechanism (CBAM) will come into effect in 2026, requiring data sharing on carbon emissions from Indian companies in carbon-intensive sectors. In addition, negotiations for an FTA with Oman are progressing, with discussions centered around duty concessions on petrochemical products.
As India looks to enhance its global trade relations, addressing disputes and aligning investment treaties with international practices will be crucial. Economic think tanks emphasize the importance of India’s negotiation skills and treaty alignment as it aims to become the third-largest economy in the world.
Published 14 June 2024, 16:54 IST