NEW DELHI: India has secured an extension of social security contribution exemptions for its professionals working temporarily in the United Kingdom from three years to five years under the UK FTA, a move that is expected to save Indian companies and workers more, Commerce Ministry sources said on Wednesday.
India also resolved concerns arising from the UK's proposed steel safeguard measures, which had emerged as the final hurdle delaying the agreement's entry into force. As confirmed by the government, 85% of India's steel exports to the US has been kept outside the UK's import restrictions measures.
"The key issue which was holding us back was the new steel measures (by the UK) that have come out of this. 85% of our exports to the UK were out of the steel measures," added the sources from the Ministry.
The India-UK Comprehensive Economic and Trade Agreement (CETA) is to be implemented on July 15, confirmed the Prime Ministers of both the countries on Wednesday. The final details of the deal will be released by July 1.
Under the arrangement, Indian professionals deputed to the UK by Indian companies and employees transferred to affiliates or sister concerns in Britain will not be required to make social security contributions in the UK for up to five years, provided they continue contributing to social security schemes in India and obtain a Certificate of Coverage (CoC). Previously, the exemption period was originally capped at three years. India had pushed for an extension to five years during negotiations, a demand that has now been accepted by the UK.
With nearly 85% of India's steel exports to the UK outside the product categories covered by the safeguard regime, India has secured continued market access through a combination of country-specific quotas, residual quotas and an authorised-use mechanism, affirmed the sources.
"Whatever balancing has been done, it has been done in a manner that the agreement is not impacted, the processes don't need to restart again. At the same time, the proportionate benefit or access that each other have given under CETA is more responsible," added the sources.
