The conclusion of negotiations for a free trade agreement (FTA) between India and the UK has been met with resounding optimism in both nations. This pivotal moment marks a significant leap forward in the bilateral relationship, representing a robust commitment to enhancing trade and economic integration. Furthermore, the finalisation of this FTA amidst the turmoil affecting the multilateral trading system — driven mainly by the erratic tariff policies of the US —underscores its importance. The India-UK FTA is a crucial countermeasure to the uncertainties in global trade. It also confirms the broader trend that other bilateral and regional sites are opening up rapidly as the World Trade Organization (WTO) struggles to live up to its reputation as the chief site for global rulemaking in international trade. At least for the foreseeable future, the bulk of rulemaking on international trade might occur through such FTAs.

While a comprehensive analysis of the FTA will only be possible once the treaty text is published, several critical issues deserve attention. Primarily, it seems that both parties have made significant gains in terms of market access for goods. India is poised to reduce its tariff rates on whiskey and gin from 150% to 75%, eventually reaching 40% over the next decade. Tariff reductions are also on the horizon for automobiles. In return, Indian textiles, footwear, leather products, and gems and jewellery will enjoy preferential access to the UK market.

At a time when India’s exports to the US face........

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