When India embarked on negotiating an FTA with Britain, there was an uncanny sense that unless handled with diligence, it might never get signed. Though India had recently surpassed Britain in GDP, the fact remained that it was negotiating with a developed country - a factor not to be underestimated.
After the elections, the new British government moved swiftly to recognise the importance of this agreement. It is now being hailed as the biggest deal struck by post-Brexit Britain. Within three months of FTA's signing on July 24, Keir Starmer visited Delhi (Oct 8-9) with the largest-ever British trade delegation to India, signalling the desire to strengthen this relationship further.
The India-UK Comprehensive Economic and Trade Agreement (CETA) rests on three defining pillars:
Boldness India has taken several bold steps for the first time, reflecting the maturity and confidence of a nation whose time has come. While India had agreed to similar provisions in multilateral forums, it had previously hesitated to take such commitments in bilateral deals.
Under CETA, India made conscious decisions to include key areas, such as labour and environment standards, public procurement, IPRs, competition and consumer protection, and state-owned enterprises.
Britain, too, made bold commitments, particularly regarding social security contributions and visa facilitation for specific professional categories. Balancing these complex issues required ingenuity, persuasion and mutual understanding. Encouragingly, this bold approach is helping India make progress on the India-EU FTA as well.
Fairness CETA proves that trade deals can be successfully negotiated while respecting both sides' sensitivities and red lines, yet allowing ample space for mutual benefit through trade liberalisation.
From the outset, both parties recognised that it could never be a one-sided deal. It required fairness, transparency, and a spirit of partnership between two friendly nations rather than treating the other as an adversary.
Differences of opinion were inevitable, even between like-minded partners, but a shared commitment to finding common ground enabled progress. This pragmatic and cooperative approach helped resolve several contentious issues, resulting in a commercially meaningful and mutually beneficial agreement.
Certainty CETA also demonstrates that countries need not ignore stakeholders' sensitivities to reach an agreement. Democracies must safeguard defensive interests of vulnerable sectors, whose livelihoods and occupations are at stake post a trade deal. At the same time, they must recognise the benefits of deeper supply chain integration and expanded market access.
A fair trade deal must reflect both nations' strengths and sensitivities to deliver a balanced outcome. While a transactional mindset may work for routine business negotiations, shaping economic destinies of nations through a treaty like an FTA requires a visionary approach. CETA was negotiated with such a shared vision guiding both leaderships and backed by a growing public optimism for a modern, forward- looking partnership.
The joint text of a trade deal must provide clarity to businesses and stakeholders. CETA is a comprehensive, legally binding international treaty designed to give such clarity. Based on its legal covenants, businesses can frame their trade and investment strategies with confidence.
CETA forms an extensive legal framework covering not just tariff schedules but also regulatory structures related to FDI, sectoral norms, social security contributions, and several other factors that shape decisions in a market economy.
By providing an assured and predictable business climate, CETA injects new vigour and confidence into entrepreneurs across India and Britain, encouraging them to explore new avenues of growth, innovation and collaboration.
Only time will reveal the full extent of gains both nations derive from CETA. Yet, with this historic agreement, India and Britain have laid a strong foundation for shared prosperity amid today's challenging global economic environment.
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After the elections, the new British government moved swiftly to recognise the importance of this agreement. It is now being hailed as the biggest deal struck by post-Brexit Britain. Within three months of FTA's signing on July 24, Keir Starmer visited Delhi (Oct 8-9) with the largest-ever British trade delegation to India, signalling the desire to strengthen this relationship further.
The India-UK Comprehensive Economic and Trade Agreement (CETA) rests on three defining pillars:
Boldness India has taken several bold steps for the first time, reflecting the maturity and confidence of a nation whose time has come. While India had agreed to similar provisions in multilateral forums, it had previously hesitated to take such commitments in bilateral deals.
Under CETA, India made conscious decisions to include key areas, such as labour and environment standards, public procurement, IPRs, competition and consumer protection, and state-owned enterprises.
Britain, too, made bold commitments, particularly regarding social security contributions and visa facilitation for specific professional categories. Balancing these complex issues required ingenuity, persuasion and mutual understanding. Encouragingly, this bold approach is helping India make progress on the India-EU FTA as well.
Fairness CETA proves that trade deals can be successfully negotiated while respecting both sides' sensitivities and red lines, yet allowing ample space for mutual benefit through trade liberalisation.
From the outset, both parties recognised that it could never be a one-sided deal. It required fairness, transparency, and a spirit of partnership between two friendly nations rather than treating the other as an adversary.
Differences of opinion were inevitable, even between like-minded partners, but a shared commitment to finding common ground enabled progress. This pragmatic and cooperative approach helped resolve several contentious issues, resulting in a commercially meaningful and mutually beneficial agreement.
Certainty CETA also demonstrates that countries need not ignore stakeholders' sensitivities to reach an agreement. Democracies must safeguard defensive interests of vulnerable sectors, whose livelihoods and occupations are at stake post a trade deal. At the same time, they must recognise the benefits of deeper supply chain integration and expanded market access.
A fair trade deal must reflect both nations' strengths and sensitivities to deliver a balanced outcome. While a transactional mindset may work for routine business negotiations, shaping economic destinies of nations through a treaty like an FTA requires a visionary approach. CETA was negotiated with such a shared vision guiding both leaderships and backed by a growing public optimism for a modern, forward- looking partnership.
The joint text of a trade deal must provide clarity to businesses and stakeholders. CETA is a comprehensive, legally binding international treaty designed to give such clarity. Based on its legal covenants, businesses can frame their trade and investment strategies with confidence.
CETA forms an extensive legal framework covering not just tariff schedules but also regulatory structures related to FDI, sectoral norms, social security contributions, and several other factors that shape decisions in a market economy.
By providing an assured and predictable business climate, CETA injects new vigour and confidence into entrepreneurs across India and Britain, encouraging them to explore new avenues of growth, innovation and collaboration.
Only time will reveal the full extent of gains both nations derive from CETA. Yet, with this historic agreement, India and Britain have laid a strong foundation for shared prosperity amid today's challenging global economic environment.
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(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
Sunil Barthwal
Former Commerce Secretary, GoI