Draft India-UK Free Trade Agreement (FTA)
The draft India-UK FTA introduces a “co-equal” rule with product-specific origin norms to enhance flexibility for goods. This approach allows producers to meet various origin criteria to claim FTA benefits, crucial for preventing rule circumvention and substandard imports.
Key Features of the India-UK FTA
- Co-equal Rules:
- Allow producers to choose any origin criteria to claim benefits.
- Designed to prevent misuse of duty concessions and ensure product quality.
- Origin Rules:
- More complex than earlier agreements, shifting from wholly-obtained criteria to flexible product-specific norms.
- Include digital exchange of certificates of origin based on self-certification.
- Enable compliance checks when risk parameters indicate potential issues.
- Product-Specific Rules:
- Essential for interconnected global supply chains.
- May be incorporated in other negotiations, like the India-EU FTA.
Benefits and Opportunities
- 99% of Indian exports to the UK to benefit from zero duty, boosting sectors like textiles, marine products, and engineering goods.
- The UK will reduce tariffs on 90% of product lines, with 85% becoming tariff-free within a decade.
Next Steps
The FTA negotiations concluded on May 6, with the agreement awaiting signing and ratification by both countries.