India-UK trade pact talks at advance stage

New Delhi: The negotiations for the proposed free trade agreement between India and the UK are at an advanced stage, and both sides are working to iron out differences on the remaining issues, a top government official said on Friday.

Commerce Secretary Sunil Barthwal said that negotiations on tough issues are underway. “These negotiations are in the advance stage. These are going on, and we are ironing out the differences. We should wait till these negotiations are over because the 13th round is going on,” he told reporters here. These remarks assume significance as both sides are expected to conclude the talks this month and may sign the deal in the last week. A majority of the 26 chapters are closed and for the remaining issues, high-level engagements at various levels are ongoing. An official delegation from the UK is here for the negotiations. A team led by Commerce Secretary Sunil Barthwal was in London recently to give an impetus to the talks. The UK team dealing with investment-related matters is already here, and the talks for the proposed bilateral investment treaty (BIT) with finance ministry officials are progressing at a faster pace.

The investment treaty is being negotiated as a separate agreement between India and the UK. These investment treaties help in promoting and protecting investments in each other’s country. The main point of contention involved in this pact is about the mechanism for the settlement of disputes.

The BITs help in promoting and protecting investments in each other’s countries. India has proposed to first utilise all local judicial remedies for settlement of disputes before initiating an international arbitration.