LONDON — Piyush Goyal, India’s trade chief, has returned to London to engage in further discussions with U.K. Business Secretary Jonathan Reynolds regarding the anticipated trade agreement between the two nations. This visit follows a productive two-day negotiation session earlier in the week, which brought both parties closer to finalizing a U.K.-India trade deal.
Progress towards an agreement
A spokesperson from the U.K. government has confirmed Goyal’s return, emphasizing the ongoing efforts to solidify a comprehensive trade agreement. Both Reynolds and Goyal are aiming to reach an agreement in principle over the weekend, with expectations that Prime Ministers Keir Starmer and Narendra Modi would finalize the deal later this year.
In tandem with the trade discussions, the two nations are also working on a Bilateral Investment Treaty. Last month, significant progress was made as negotiators successfully closed the mobility chapter, which governs the transfer of personnel between companies. In this context, India made concessions, agreeing that Britain would implement only minor adjustments to its visa regulations.
Key issues still on the table
Earlier this week, Goyal left the U.K. for a trip to Oslo and Brussels, where he focused on negotiating exemptions from new carbon tax regimes. Despite the advancements, several critical issues remain unresolved. These include India’s data localization rules affecting financial services, the definition of Indian territory in the Free Trade Agreement, the sunset clause in the investment treaty, and India’s requests for exceptions from Britain’s emerging border tax on high-emission goods.
“We have advanced that agenda to deliver a great deal and our relationship’s been a part of that story,” Reynolds stated online, reflecting on the progress made during Goyal’s visit.
He expressed optimism about continuing these negotiations, highlighting their significance for both the U.K. and India. A U.K. government spokesperson reiterated their commitment, stating, “We have been clear we will only sign a deal that is fair, balanced and ultimately in the best interests of the British people.”