Magazine

Last edition
September 2024

Home › Investment & Trading ›India-UK Trade Talks Enter Crucial Phase with EV Concessions in Focus

India-UK Trade Talks Enter Crucial Phase with EV Concessions in Focus

The focal point of contention revolves around the implementation of tariff rate quota (TRQ) arrangements for EVs, with discussions exploring the balance between concessional and normal duty.

December 18, 2023. By Abha Rustagi

In the final stretch of negotiations for the proposed free trade agreement (FTA), India and the UK grapple with critical issues, including visa protocols for domestic professionals and duty concessions on British electric vehicles (EVs).

An official statement reveals that talks are intensifying as an Indian delegation currently engages with UK counterparts to address disparities. The focal point of contention revolves around the implementation of tariff rate quota (TRQ) arrangements for EVs, with discussions exploring the balance between concessional and normal duty.

The UK's request for customs duty concessions on EV exports to India under the FTA is met with India's push for a more liberal visa regime for its services companies.

As India's EV market gains global attention, concerns arise over the UK's proposal to phase out internal combustion engine (ICE) vehicles by 2035.

India is committed to protect its EV sector through a production-linked incentive (PLI) scheme, emphasizing the delicate balance required between the interests of both nations.

The Indian government's initiatives, including PLI for advanced chemistry cell battery storage and the automotive industry, add complexity to the negotiations. The ongoing FTA discussions encompass a range of intricate issues, from social security pacts and rules of origin to intellectual property rights and duty concessions on various goods.

Tags:

Internal combustion engine

EVs

ICE