Scant Tariff Concessions for British Beers
The India-UK Free Trade Agreement (FTA), signed on the 6th of this month, does not offer any cuts in tariffs on wines from Britain, official sources said. Slight tariff advantages are provided only to British beers.
No Cuts in Tariffs on Crucial Agricultural Goods
India has not committed to lowering tariffs on a number of British farm products. These include:
- Milk and dairy products
- Apples
- Butter
- Oats
- Cooking oils
- Animal meat
Lowered Duties for British Scotch Whisky and Cars
As per the deal, tariffs on British Scotch whisky and cars will be lowered. The import duty on Scotch whisky is presently 150%. This will come down to 75%, and after 10 years, it will fall further to 40%. Officials, however, feel that this shift might not affect the local market significantly because of low volumes of imports.
UK Lowers Tariffs on Indian Goods
The UK has committed to reducing tariffs on certain Indian products, such as clothing and leather articles. This should enhance trade opportunities for Indian exporters.
India-EU Free Trade Negotiations Commence Today
11th FTA Negotiation Round
India and the European Union start the 11th round of free trade agreement negotiations today. The talks are scheduled to end on the 16th of this month. Both sides have agreed to close the first stage of the deal at a faster pace, say sources. Global trade uncertainties led to the deal being negotiated in two phases.
FTA finds Support from Luxury Car Makers
Mercedes-Benz and BMW Respond to India-UK Agreement
Luxury automobile companies have welcomed the India-UK FTA. Mercedes-Benz India CEO Santosh Iyer opined that free trade is encouraged by the company. He explained that 95% of the cars they sell in India are complete built-up imports, incurring a duty of 15–16%. He added that the FTA would not provide dramatic price modifications for luxury automobiles.
BMW Group India President Vikram Pawah also welcomed the agreement. He stated that the company will keep striving to lower trade barriers in all markets. He further stated that any price effect will become apparent only when the complete agreement details are out.
