TFIGlobal
TFIGlobal
Right Arm. Round the World. FAST.
No Result
View All Result
  • Indo-Pacific
  • Americas
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • Indo-Pacific
  • Americas
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
TFIGlobal
TFIGlobal
No Result
View All Result

In a royal snub to European Union, India takes the first step towards a free trade deal with UK

Abhinav Singh by Abhinav Singh
July 27, 2020
in Europe
Reading Time: 4 mins read
0
india uk eu
2.7k
VIEWS
Share on FacebookShare on Twitter
Become a Patron!

A step which is all set to vindicate TFI’s prediction, India and the United Kingdom recently worked out an ‘Enhanced Trade Partnership’ as a precursor to the larger Free Trade Agreement (FTA) between the two countries. The working out of ETP is being seen as building the foundation of an FTA.

The issue was discussed in the 14th Joint Economic and Trade Committee (JETCO) meeting between the two countries. The meeting was co-chaired by Commerce and Industry Minister Piyush Goyal and U.K. Secretary of State for International Trade Elizabeth Truss.

Also Read

China could end up controlling Japan’s gas and it’s all Japan’s mistake

The reason behind the sudden surge in Putin’s popularity in the United Kingdom

Positive #UKIndiaJETCO meeting with @PiyushGoyal and @HardeepSPuri. We agreed to deepen our trading relationship through an Enhanced Trade Partnership.

We’re keeping all options on the table, including a possible 🇬🇧 🇮🇳 FTA in the future. @ranil pic.twitter.com/rihSubVaBY

— Liz Truss (@trussliz) July 24, 2020

After the meeting, the two sides agreed to work towards removing additional barriers and to work together to ensure both countries maximize the potential of their digital economies including on data regulation and interoperability.

“Minister Goyal and SoS Truss affirmed their shared commitment to an FTA and towards that, early harvest deals in a staged manner,” an official statement said.

It is also worth mentioning that MoS Commerce & Industry, Mr. Hardeep Puri, and UK’s International Trade Minister Mr. Ranil Jayawardena will have monthly meetings to intensify the dialogue, leading up to the signing of the FTA.

Off late, India under Prime Minister Narendra Modi has been eyeing a major reset of its free trade agreements, including exiting those that have brought few tangible benefits to the country and have instead hurt the domestic industry.

By going with the UK, India has given a stern message to Brussels that it doesn’t fare really up in its priorities.

In layman terms, the signing of an FTA encompasses two trading partners who strategically eliminate or significantly reduce import duties on the maximum number of goods traded between them, thereby benefitting both parties to build a mutually profitable environment.

EU being dumped for its reckless behavior 

The EU’s diabolical stance on India off late regarding its internal issues like abrogation of article 370 and CAA has not sat well with the government. The EU tried passing innate resolutions on the aforementioned issues to build pressure on New Delhi for a Free Trade deal, however that maneuver so far has only backfired.

The EU-India free trade deal has been lurking in the lurch for the last several years and given that the UK has exited EU, which was India’s single biggest trading partner in the region–New Delhi doesn’t seem much interested in signing a Trade deal with Brussels nor does it seem the deal any viable.

And the reasoning is sound too as India-UK trade was worth £24 billion last year, and India is now the second-largest investor in the British economy with 120 new projects and more than 5,000 new jobs created in 2019-20.

India, which was negotiating an FTA with the European Union till now, has made it clear that now it will go with London for an FTA instead of Brussels. Apart from the nasty resolutions, recently the EU struck an FTA with Vietnam, which is India’s rival in attracting manufacturing, and therefore, New Delhi was given another reason to dump the EU altogether.

Also given the EU’s sluggish economic growth and lethargic bureaucracy, the UK is looking for new avenues for trade and business ties in countries like India and Australia, which have the potential to grow exponentially in the coming decades.

EU and the UK itself are at loggerheads over signing a post-Brexit deal even when the deadline of 31 December 2020 is fast approaching. Therefore, Britain has also focused its attention on India to sign an FTA.

Having FTAs with markets that are unexplored or underexplored by British businesses, like India, Australia, New Zealand, Canada, and the United States, would provide new markets and investment destinations to British businesses. And Boris Johnson led Tories are looking to cash in on this opportunity.

After the Brexit and the rising anti-European Union sentiment across Europe, the translational body is slowly but steadily losing its sheen. The EU is trying to be the flag bearer of ‘liberal democracy’ and what they call ‘rule-based international system’; but it has failed in the last few years and the biggest proof of this is, obliviously, Brexit.

A new India that keeps its domestic interests at the forefront

India under Prime Minister Narendra Modi has shown unflinching resolve when dealing with countries and world bodies regarding FTA’s. India has also shown its level-headedness when it walked out of Regional Comprehensive Economic Partnership (RCEP) agreement with Asean countries, Australia, New Zealand, Japan, Korea and China, citing the agreement didn’t fit India’s line.

“India is not in a weak leadership which had worked only on deadlines to execute FTAs. India will enter into an FTA or comprehensive partnerships on India’s terms,” Piyush Goyal had said last year, further giving a proof that India was evolving.

The FTA with the UK is sooner than later coming and definitely coming before the EU and Britain chalk out any middle ground. India has played this entire episode beautifully and it’s only a matter of time now before both countries put heir John Hancock’s down.

Tags: The United Kingdom
Share1981TweetSend
Previous Post

Canadian PM Trudeau has learnt his lesson after antagonising India and is trying to make amends

Next Post

Bernie Sanders has hijacked Joe Biden’s campaign and has plans to turn superpower US into a super-joke

Also Read

Putin is creating a new European Union

Putin is creating a new European Union

May 27, 2022
The Ukrainian army has had enough of Zelensky; the mood is changing now

The Ukrainian army has had enough of Zelensky; the mood is changing now

May 27, 2022
A big NATO versus EU clash is on the cards, and the reason is food

A big NATO versus EU clash is on the cards, and the reason is food

May 27, 2022
tehran issue

“Who leaked the secret info?” Israel is furious at Biden administration for backstabbing it

May 27, 2022
Load More

Leave a Reply Cancel reply

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

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Trending
  • Comments
  • Latest
US economy is all set to suffer ten big setbacks in the next six months

US economy is all set to suffer ten big setbacks in the next six months

May 22, 2022
China makes the last-ditch effort to prevent its faulty weapons from getting exposed in Ukraine

China makes the last-ditch effort to prevent its faulty weapons from getting exposed in Ukraine

May 10, 2022
China’s $14 billion port city in Sri Lanka is sinking

China’s $14 billion port city in Sri Lanka is sinking

April 7, 2022
China could stage a hostile takeover of Japanese semiconductor firms to heal its wounds

China could stage a hostile takeover of Japanese semiconductor firms to heal its wounds

May 7, 2022
The dollar is officially DEAD now

The dollar is officially DEAD now

May 22, 2022
Europe to activate Nord Stream 2 gas pipeline very soon   

Europe to activate Nord Stream 2 gas pipeline very soon  

Now, Italy begins backtracking on its promises and extending an olive branch toward Russia

Now, Italy begins backtracking on its promises and extending an olive branch toward Russia

The dollar is officially DEAD now

The dollar is officially DEAD now

China makes the last-ditch effort to prevent its faulty weapons from getting exposed in Ukraine

China makes the last-ditch effort to prevent its faulty weapons from getting exposed in Ukraine

russia ukraine war

By the time the war ends, Russia will be stinking rich, Ukraine a non-entity, and Europe in doldrums

Putin is creating a new European Union

Putin is creating a new European Union

May 27, 2022
The Ukrainian army has had enough of Zelensky; the mood is changing now

The Ukrainian army has had enough of Zelensky; the mood is changing now

May 27, 2022
A big NATO versus EU clash is on the cards, and the reason is food

A big NATO versus EU clash is on the cards, and the reason is food

May 27, 2022
tehran issue

“Who leaked the secret info?” Israel is furious at Biden administration for backstabbing it

May 27, 2022
White Supremacists

Americans who went to fight for Ukraine will be punished under ‘White Supremacist’ charges

May 27, 2022
Youtube Twitter Facebook
TFIGlobal
  • About us
  • Contact Us
  • Terms of use
  • Privacy Policy

©2022 - TFI MEDIA PRIVATE LIMITED

No Result
View All Result
  • Indo-Pacific
  • Americas
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa

©2022 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Follow us on Twitter

and never miss an insightful take by the TFIGlobal team

Follow @tfiglobal
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.