After Brexit trade deal, India should pay livelier attention to secure FTAs with both the UK & EU

As the United Kingdom and European Union signed the historic trade deal on Christmas Eve, almost a week before the deadline on December 31, new arrangements allowing for tariff-free trade in goods will come into force and bilateral trade dynamics of the UK with India is likely to be disrupted.

According to the excerpts, trade of Indian goods would not draw any significant benefits from this deal as there no preferential custom duty benefits for domestic goods are laid down in the agreement..

Its about time India pushed to secure free trade agreements (FTAs) separately with both the UK and EU in order to consolidate the bilateral trade as its neighbouring countries like Vietnam and Bangladesh will have greater duty advantages particularly in apparel and marine goods sector.

The bilateral trade between India and the UK dipped to $15.5 billion in 2019-20 from $16.9 billion in 2018-19 hence the trade deal with the EU and the UK, will get a better opportunity for India to cater to the demands of both the markets by reducing the customs duty disadvantages faced by domestic players in Britain.

Cover image by The Wall Street Journal