India-UK FTA: Key Demands Dropped for Mutual Sensitivities

New Delhi, May 7 (PTI) India and the UK have respected each other's political sensitivities during the negotiations for free trade agreement, with New Delhi agreeing to drop its demand on post-study work visas for students in exchange for Britain withdrawing its request to open up legal services here, an official said on Wednesday.

India and the UK on Tuesday announced the conclusion of the free trade agreement which will make British Scotch whiskey and cars cheaper in India, while providing greater market access for domestic goods from sectors such as garments and leather products in Britain.

"Both the countries have respected each other's sensitivities. Post study work visas were politically sensitive for the UK as legal services were for India. We agreed to drop our ask on post study work visa in lieu of the UK dropping its ask on legal services," the official said.

The Advocates Act, which is administered by the Bar Council of India (BCI), provides for foreign lawyers or law firms to visit India on a reciprocal basis for temporary periods to advise their clients on foreign laws and diverse international legal issues.

Certain quarters in the legal fraternity are against any easing in the sector for foreign players.

In the trade agreement, the UK has provided an assured regime for temporary entry and stay requirements for various categories of natural person like business visitors; intra-corporate transferees; contractual service suppliers; independent professionals; investors; and partner and dependent children of intra-corporate transferees (with right to work).

Britain has offered mobility commitments in 36 sub-sectors such as computer-related services, business services under contractual service suppliers (which also includes yoga instructors, classical musicians and Chefs up to a combined total of 1,800 per year) and 16 sub-sectors in independent professionals (which includes computer and related services, research and development services).

The free trade agreement (FTA) would provide a number of new opportunities for domestic independent professionals such as yoga instructors, musicians, and chefs.

Similar provisions are also there in the economic cooperation and trade agreement between India and Australia, which was implemented in December 2022.

As part of that agreement, Australia has also given an annual quota of 1,800 for qualified, professional Indian traditional chefs and yoga teachers entering the country as contractual service suppliers.

"UK has offered its best FTAs commitment to India. Broad commitment has been offered by the UK across 137 sub-sectors, which includes areas of India's interest such as IT/ITeS, financial Services, professional services, other business services and education services," the official said, adding that both have taken commercially meaningful MFN (most-favoured nation) commitments.

The UK has also offered MFN commitment for 92 sectors/sub-sectors to India, which includes privately-funded health services, education services, professional services and a number of business services.

"Britain has also agreed not to impose numerical restrictions or Economic Needs Test requirements for the temporary entry of natural persons to their territory," the official said.

Regarding recognition of professional qualifications, both countries have agreed to engage and identify professional services for negotiating mutual recognition agreement (MRA) or similar pacts within 12 months of the date of entry into force of the FTA.

It will take about a year for its implementation.

"The goal will be to conclude these MRA negotiations within 36 months from the date of entry into force of the FTA," the official added.