UK begins the process to start Free Trade Talks (FTA) with India | Daily Current Affairs 2021

UK begins the process to start Free Trade Talks (FTA) with India

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United Kingdom (UK) recently began the process to start Free Trade Talks (FTA) with India.

Highlights:

  • The country has launched a 14-week consultation process with business representatives to get their views on prospective Free trade deals.
  • The Free Trade talks are expected to formally start in September-October, 2021.
  • This “Enhanced Trade Partnership (ETP)” will open new opportunities for iconic industries like whisky.
  • It will also boost trade in science & services besides creating jobs across the country.
  • The trade deal is expected to conclude by 2022.

Background:

  • On May 4, 2021, during a virtual summit between Prime Minister Narendra Modi and his UK counterpart Boris Johnson, both the countries had announced to start talks on  Enhanced Trade Partnership (ETP) that envisages facilitating market access in specific sectors.
  • The trade deal will be worth 1 billion pounds and is expected to create about 6,500 job opportunities in UK.

What is Free Trade Agreement (FTA)?

  • Free Trade Agreement (FTA) is an agreement between two or more countries through which countries agree on certain obligations affecting trade in goods & services, intellectual property rights and protections for investors.

What is the significance of FTA?

  • It reduces the trade barriers and protects interests competing abroad.
  • It reduces or eliminates tariffs on products originating in countries following FTA norms.
  • It protects and enforces intellectual property rights among FTA partner countries.
  • It helps in maintaining Product Standards among partners.

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