Unresolved Issues Delay India-UK Trade Agreements

The finalization of three significant agreements between India and the UK, including a proposed Free Trade Agreement (FTA), is delayed owing to unresolved issues. Key concerns include the sunset clause in the BIT, UK's carbon tax, and data localization. Commerce Minister Goyal's recent visits aimed to resolve these matters.

The anticipated conclusion of three major agreements between India and the UK has hit a snag, sources report. Central to these negotiations are a Free Trade Agreement (FTA), a Bilateral Investment Treaty (BIT), and a Social Security Pact. Despite extensive discussions, certain critical issues remain unresolved, delaying the process.

Recent discussions witnessed Indian Commerce and Industry Minister Piyush Goyal meet with UK's Secretary of State for Business and Trade, Jonathan Reynolds, in London. However, differences persisted over issues like the BIT's sunset clause, UK's new carbon tax, and data localization policies.

The two nations initially aimed to finalize the negotiations by April 29. However, with disagreements still present, further meetings are anticipated. Notably, Finance Minister Nirmala Sitharaman expressed optimism for an imminent resolution following her dialogue with UK Chancellor Rachel Reeves.

(With inputs from agencies.)