India’s concerns over conceding more flexible ‘rules of origin’ to the UK in Free Trade Agreement (FTA) negotiations are underscored by the potential impact on equitable deals with the European Union (EU), currently under discussion. New Delhi fears that excessive flexibility could allow EU products to enter via the UK, influencing negotiations with the EU. The ‘rules of origin’ provision, specifying minimal processing in the FTA country, is pivotal, and India’s stance seeks to balance concessions with the preservation of negotiating leverage. Talks on India-EU FTA have covered diverse areas, including goods, government procurement, and rules of origin. The ongoing India-UK FTA negotiations, originally slated for Diwali 2022, face unresolved issues such as rules of origin, tariff concessions on Electric Vehicles, and service-related norms. While India shows willingness to offer some flexibility, it emphasizes the necessity of local manufacturing to secure the anticipated trade deal with the UK. The negotiation timeline remains fluid, with officials emphasizing continuous efforts to address differences and finalize the comprehensive agreement.
India-UK FTA: More liberal ‘rules of origin’ could lead to inequitable deal with EU, says source
