On Thursday, India signed a free trade agreement, officially dubbed as a comprehensive economic and trade agreement (CETA), with the UK – so far 16. The business contract – because the country aims to strengthen bilateral trade and investment.
The free trade agreement is an agreement between two or more countries where they agree to either terminate or reduce duties on the maximum number of goods traded between them, in addition to the limitation of non -medical obstacles from a significant value of imports from partner countries and release standards to promote exports and bilateral investment.
PM Modi in London Live Update HERE
India protected the interest of domestic farmers by excluding dairy products, edible oils and apples in FTA, while ensuring zero duties for 95 % of agriculture and processed food.
A complete list of products that will now have zero duty
Processed food – mango pulp, cucumbers and impulses, fruit, cereals, spices
Vegetables/oil
Transport/car
Leather/shoes
Electronic machines
Head cover/glass/ceramics
Fabric/clothing
Wood/paper
Base metals
Mechanical machines
Minerals
Chemicals
Plastic/rubber
Tools/Hours
Gems and jewelry
Furniture/sports goods
Weapons/ammunition
Turmeric, pepper, cardamom
Naval products – shrimp and tuna, fish meal and feed
The agreement was signed by Minister of Trade Piyush Goyal and his British counterpart Jonathan Reynold in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.
FTA is expected to benefit 99 % of Indian exports from tariff and facilitate British companies to export whiskey, cars and other products to India, in addition to strengthening the total trading basket, according to Indian officials.
The agreement that has been ensured after three years of negotiations is expected to ensure a comprehensive market access to Indian goods in all sectors, and approximately 99 % of customs (product categories) cover almost 100 % of business values from the elimination of tariffs, they said.
India-UK business relationships
According to the PTI report, the United Kingdom said that Indian consumers would benefit from improved access to the best British products – from non -alcoholic beverages and cosmetics to cars and medical devices – because the average tariffs will fall from 15 % to 3 % after FTA is filmed.
The United Kingdom is already importing £ 11 billion from India, but liberalized tariffs will make it easier for British consumers and businesses easier and cheaper to buy Indian products and strengthen the exports of Indian enterprises to the UK, said in a statement, hours before FTA ink.
“Our Milestone Agreement on Business Agreement with India is the main victory for Britain,” Starmer quoted in reading.
(Tagstotranslate) India free trade agreement
