Commerce minister Piyush Goyal on Monday clarified that the ongoing Free Trade Agreement (FTA) with the United Kingdom would only consider the issue of business visas and not discuss immigration. He said nowhere in the world immigrations are part of the trade negotiations. Goyal was responding to a media query after the resumption of free trade talks with the UK on Monday.
“They are two (immigration and free trade negations) are two different subjects and India has never discussed immigration in any free trade negotiations,” Goyal said.
His counterpart – Secretary of State for the Department for Business and Trade of the United Kingdom Jonathan Reynolds – seconded Goyal’s statement as he said that the UK government treats the two matters separately.
He, however, clarified that business mobility is a separate issue, and that business visas would certainly be part of the trade negotiations. Goyal also added that student visas are akin to business visas and they would also be part of the trade talks with the UK.
The trade talks with the UK began after a hiatus of nine months. The 14th round of negotiations for the FTA, which began on January 10 last year, was underway till May 2024 when the process was paused by the UK side due to their elections.
When asked if the trade negotiations would be completed in the current financial year, Goyal said it's never too early and never too late to conclude a good agreement.
I have consistently maintained in all our trade negotiations over the years that trade agreements are for a long term future. One has to Crystal gaze into 20, 30 or 50 years into the future and make a robust agreement, which is agreement from both sides. And therefore, we should not rush into things,” said Goyal.
According to a press statement by the ministry of commerce, both sides have agreed to resume negotiations towards a balanced, mutually beneficial and a forward-looking deal that delivers mutual growth and builds on the strengths of the two complementary economies.
While 14th round of discussions have taken place, there are a few thorny issues left to be resolved between the two countries. India is demanding greater access for its skilled professionals from sectors like IT and healthcare in the UK market, besides market access for several goods at nil customs duty. The UK, on the other hand, is seeking a tariff cut in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionary items.
"Many of the tariffs that India has are really to protect us from non-market and non-transparent economies or economies which are known for predatory pricing or dumping of goods, and I think between the UK and India, we have much more flexibility and ability to significantly reduce tariffs to make businesses more competitive between the two countries," Goyal said while responding to a question on tariff.