UK to sign trade agreements with Egypt and India
India
and the United Kingdom are exploring a limited trade agreement to lower tariffs
on a few goods and easing rules for select services in what is being widely
perceived as preparing ground for a free trade agreement (FTA). The issue was
recently discussed by the Joint Economic and Trade Committee (JETCO),
co-chaired by commerce and industry minister Piyush Goyal and the UK secretary
of state (SoS) for international trade Elizabeth Truss.
“Minister Goyal and SoS Truss affirmed their
shared commitment to a FTA and towards that, early harvest deals in a staged
manner,” an official statement said.
The Indian government is reportedly looking at a
time frame of around a year to clinch the early harvest agreement with junior
trade minister Hardeep Puri and his UK counterpart Ranil Jayawardena scheduled
to hold monthly meetings to intensify the dialogue.
The United Kingdom is also eager to clinch
bilateral trade deals after Brexit and India wants to make the most out of it
as its garment makers and several other labour-intensive sectors often get an
unfavourable deal compared to counterparts from Bangladesh and other rivals.
The UK India Business Council has welcomed the
development.
UK is also close to signing an FTA with Egypt. Following the JETCO, UKIBC managing director Kevin McCole said: ‘The enhanced trade partnership announced today, setting the path to a UK-India FTA, is an important signal that both the UK and India are committed to deepening an already strong partnership. It is also important that the governments are retaining their sharp focus on tackling market access barriers, which will not only expand bilateral trade and investment, but build confidence and momentum towards an FTA.”
Egypt
will soon sign a free trade agreement with the United Kingdom following the latter’s exit from
the European Union, according to minister of trade and industry Nevine Gamea,
who recently announced the development during a virtual conference on the
government’s role in supporting the private sector organised by the British
Egyptian Business Association.
As the United Kingdom considers Egypt to be the
main gateway to Africa, her ministry was looking at obtaining additional
advantages, especially concerning the export of crops, Gamea said.
The volume of trade exchanged between the two countries reached $2.5 billion during
the first 10 months of 2019, compared to $2.4 billion during the same period in
2018.
During the conference, Gamea spoke about
intensifying local industrialisation, which is a long-standing issue that has
been discussed for years, but whose implementation is not easy, according to
Egyptian media reports.
Gamea noted her ministry and the finance
ministry have held several meetings with industrialists from sectors like
engineering, textiles and readymade clothing to understand the needs of
domestic manufacturers.
Customs distortions were the biggest obstacle
facing the ministry’s plans to deep local industrialisation, she said.
The government will review the new export
subsidy programme, launched last November, in which overdue arrears are being
paid. The programme has met with opposition from several companies, which
necessitated the review, she added.
Source: Fibre2Fashion News Desk (DS)