FTA talks on: India, UK eye social security pact

NEW DELHI: India and the UK on Monday announced the resumption of talks for a free trade agreement, which will also cover social security and investment, amid signals that New Delhi's demand for a liberal business visa regime, including for students, who want to work after completing their education, will be considered favourably.
"Our discussions focused on advancing the India-UK Free Trade Agreement negotiations and ensuring that the agreement is balanced, ambitious and mutually beneficial," commerce and industry minister Piyush Goyal said after meeting UK secretary of state for business and trade Jonathan Reynolds.
The minister also indicated that India had the flexibility and ability to reduce tariffs, a key demand from the UK. "Many of the tariffs that India has are really to protect us from non-market economies, non-transparent economies, or economies which are known for predatory pricing or dumping of goods. Between the UK and India, we have much more flexibility and ability to significantly reduce tariffs to make business more competitive between the two countries."
Asked about the deadline for conclusion of talks, Goyal said: "It is never too early and never too late to conclude a good agreement... it is always good to conclude fast. So, we will have speed but not haste." While asserting that there was real urgency from the UK side, which was according top priority to the FTA, Reynolds added that his govt would prefer quality over speed.
Addressing questions over a liberal business regime visa, Goyal said India had never included immigration issues in the trade dialogue but added that when it came to students. who wanted to stay back and had job offers, which added to economic activity in another country, they were treated as business visas, as was the case with the initial trade deal signed between India and Australia. He also said that with more services engagement and investment, the requirement for business visas would only grow.
Both ministers were hopeful that negotiators would build on the talks so far to conclude the deal early. While the UK got India to offer more concessions in services, New Delhi asked for the social security pact or the Double Contribution Convention Agreement in return. The idea is to help Indian professional working on limited term projects in the UK to avoid contributing the social security funds there as they do not receive the benefits when they return.