Get it on Google Play

Free Trade Agreement (FTA): India and UK

Free Trade Agreement (FTA):

India and the UK have launched the formal Free Trade Agreement (FTA) negotiations, that both countries envisage concluding by the end of 2022.

  • Until then, both countries are contemplating an interim free trade area, which will result in reducing tariffs on most of the items.
  • Both countries agreed to an early harvest scheme or a limited trade agreement to lower tariffs on a small set of goods apart from easing rules for select services.
  • Further, they agreed to avoid “sensitive issues” and focus on areas where there is more complementarity.
  • The agriculture and dairy sectors are considered sensitive sectors for India in trade talks.
  • Also, a target of doubling the trade between India and the United Kingdom (UK) by 2030 has also been set.

Free Trade Agreement (FTA):

  • It is a pact between two or more nations to reduce barriers to imports and exports among them.
  • Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
  • The concept of free trade is the opposite of trade protectionism or economic isolationism.
  • FTAs can be categorised as Preferential Trade Agreement, Comprehensive Economic Cooperation Agreement, Comprehensive Economic Partnership Agreement (CEPA).

Leave a Reply

Your email address will not be published. Required fields are marked *