India and the UK have affirmed their commitment to negotiate a free trade agreement (FTA) with a view to further strengthen economic ties.

The issue was discussed in the 14th Joint Economic and Trade Committee (JETCO) meeting between the two countries on July 24. It was co-chaired by Commerce and Industry Minister Piyush Goyal and UK Secretary of State for International Trade Elizabeth Truss.

What is the purpose of JETCO?

The India-UK Joint Economic and Trade Committee was established in 2005. It has been conceived as a business driven institutional framework to enhance trade and investment between the two countries. 

The discussions in the JETCO are based on two pillars: market access issues and enhancing business to business relationships. Establishment of the JETCO gave a vibrant upward direction in the India-UK economic partnership. 

The JETCO delegations meet annually under the leadership of the Minister of Commerce and Industry and the Secretary of State for Business, Innovation and Skills alternating in both capitals. 

Highlights of the 14th JETCO

Both sides affirmed their shared commitment to an FTA and towards that, early harvest deals in a staged manner. 

In an FTA, two trading partners eliminate or significantly reduce import duties on the maximum number of goods traded between them.

Minister of State for Commerce and Industry Hardeep Singh Puri and his counterpart, UK Minister of State for International Trade, Ranil Jayawardena will have monthly meetings to intensify the dialogue.

It was also decided that a meeting led by Goyal and Truss will be held in Autumn 2020 in New Delhi to carry forward the dialogue.

The co-chairs of business led Joint Working Groups on life science and health, ICT and food and drink set up during the last JETCO made their recommendations to the ministers.

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