United Kingdom launched the process to start free trade talks with India followed by launch of a 14-week consultation process with business representatives to get their views on prospective Free trade deal.
Highlights
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Free Trade talks is expected to formally start in September-October, 2021.
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This “Enhanced Trade Partnership (EYP)” will bring up new opportunities for iconic industries such as whisky.
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It will also boost trade in science & services besides creating jobs across the country.
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Trade deal is expected to conclude by 2022.
Background
India and the UK had announced to start talks on enhanced trade partnership following a summit between Prime minister Narendra Modi and Boris Johnson, Prime Minister of UK on May 4, 2021. 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?
It 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. It reduces the trade barriers and protects interests competing abroad.
Significance of FTA
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It reduces or eliminate tariffs on products originating in countries following FTA norms.
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It protects and enforce intellectual property rights among FTA partner country.
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It helps in maintaining Product Standards among partners.