Mint Quick Edit | India-UK FTA: Fair play in the trade arena

5 months ago 9

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All in all, the talks were held in a friendly air, even as we’ve struggled to strike a deal with the US. (Bloomberg)

Summary

India and the UK finally signed a trade pact. There’s been give and take, even a let-down or two, but amid a global trade churn, this is a fine example of the spirit of free trade.

India and the UK have finally signed their long-awaited free trade agreement, expected to take two-way trade to $120 billion in the next five years. Broadly, the pact will result in tariff barriers being eliminated across all kinds of goods.

Also Read: Storm in a teacup: Should Indian workers in the UK be exempt from payroll tax?

As for shielded sectors, the provisions include India cutting its duty on Scotch whisky bit by bit over a decade and slashing it on British medical devices and aerospace products to special rates.

Also Read: Mint Quick Edit | An India-UK FTA at long last!

The UK will drop tariffs on Indian textiles, footwear, gems and jewellery and seafood to zero. These labour-intensive sectors, some of which are the mainstay of our small businesses, are crucial to India’s economic growth.

Also Read: Rahul Jacob: The contours of a new trade order are becoming visible

London held out on allowing more Indian software engineers to work and settle in the UK, though it made other useful concessions, while New Delhi pushed back on faster Scotch cuts. All in all, the talks were held in a friendly air, even as we’ve struggled to strike a deal with the US.

Low-hanging fruits are meant to be plucked, not laboured over. The current India-England Test cricket series is a pointer: we fight hard, take losses on the chin and celebrate wins over tea together. Maybe Americans should learn to play cricket.

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