What is a Free Trade Agreement?
Free Trade Agreement is an agreement between two or more countries to reduce barriers to the import and export of products and services. Both the countries doing business benefit from this agreement. Free trade agreements will reduce quotas, tariffs, subsidies or restrictions that may limit the movement of goods and services across borders. At the same time, the Free Trade Agreement can allow free trade between the two countries. This agreement may cover services, investments, goods, intellectual property, competition, government procurement and other areas.
Agreement can happen till Diwali
British High Commissioner said that on the special occasion of Diwali, people of both the countries can get the gift of free trade agreement. Along with the British High Commissioner, Rajendra Ratnu, Joint Secretary of the Ministry of Commerce and Industry, said in this program that this free trade agreement is likely to be completed soon. Both the countries have shown open positivity on this matter. Most of the issues of this agreement have been agreed between the two countries and this agreement was signed in October. Diwali. This agreement will improve the relations between the two countries and it will also be in the interest of both.
It is worth noting that Free Trade Agreement is an international law according to which two or more countries try to overcome the problems of import-export to increase trade between each other. For this a free trade agreement is signed between them.
Emphasis on increasing trade between the two countries
At present there is a trend of $ 50 billion between India and Britain, which is targeted to increase to $ 100 billion. The trade between India and Britain largely depends on the service sector, which accounts for 70 percent of the total trade. India is the 12th largest trading partner of the UK. Wherein the UK is the 7th largest exporting country of India. In such a situation, both the countries want to accelerate their economic growth by removing trade problems through the Free Trade Agreement.
Important for India-UK
Free Trade Agreement is very important for India and UK. Actually, it will boost all trade and investment. At the same time, both the countries had agreed to hold talks in January 2022, after that the matter turned positive. Its main objective is to advance trade and investment relations. Let us tell you that the 5th round of talks between the two countries was completed on 29 July.
India’s agreement with these countries
Let us know that till April 2022, India had 13 free trade agreements including South Asian Free Trade Agreements Bhutan, Nepal, Thailand, Singapore, Japan and Malaysia. However, out of 13, the agreements signed with the UAE, Mauritius and Australia during the last five years are also included. At the same time, 6 limited trade agreements have also been signed.