The most challenging part of the India-UK trade pact is likely to be negotiating tariffs and rules of origin. India has a high tariff structure on many goods, and the UK is looking for significant tariff reductions. Rules of origin are also important, as they determine which goods are eligible for preferential tariffs under the trade pact.
Another challenge is likely to be the issue of intellectual property rights (IPRs). The UK wants India to strengthen its IPR laws and enforcement, while India is concerned that this could make it more difficult for its companies to access generic drugs and other technologies.
Finally, the two sides will also need to agree on a range of other issues, such as market access for services, investment rules, and data protection.
Here is a more detailed look at some of the specific challenges that the two sides will need to overcome:
**Tariffs:** India has a high tariff structure on many goods, particularly in the agricultural and manufacturing sectors. The UK is looking for significant tariff reductions, especially on goods that are important to its exports, such as cars, whiskey, and cheese.
Rules of origin: Rules of origin are used to determine which goods are eligible for preferential tariffs under a trade pact. India and the UK will need to agree on a set of rules of origin that is fair and transparent.
Intellectual property rights (IPRs): The UK wants India to strengthen its IPR laws and enforcement. India is concerned that this could make it more difficult for its companies to access generic drugs and other technologies.
Market access for services:The UK wants India to open up its services sector to more foreign competition. India is concerned about the impact of this on its domestic industries.
Investment rules:The UK wants India to relax its investment rules and make it easier for foreign companies to invest in India. India is concerned about the impact of this on its strategic industries.
Data protection: The UK and India will need to agree on a set of rules for the protection of personal data.
Negotiating these issues is likely to be complex and time-consuming. However, if the two sides can reach an agreement, it would be a major boost for their economies.
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