India-U.K. Comprehensive Economic and Trade Agreement Comes into Effect, Offering Significant Gains
The India-U.K. Comprehensive Economic and Trade Agreement (CETA) and the Double Contribution Convention (DCC) came into effect on July 15, hailed as a "gold standard" free trade agreement. India gains immediate tariff removal on 96.8% of its tariff lines by the U.K., and access to key service sectors. The DCC benefits Indian workers in the U.K. by exempting them from U.K. social security if already contributing in India, benefiting over 75,000 workers. The U.K. gains market access in India, with phased tariff elimination on goods and opening of service sectors. Notably, India has agreed to reduce automobile tariffs and allow U.K. firms in central government procurement bids. Investment agreement and investor-state dispute resolution were left out.
Key Points
- The India-U.K. CETA and DCC came into effect on July 15, aiming to boost trade and benefit workers.
- India gains significant market access in the U.K. with immediate tariff removal on most goods and access to service sectors.
- The DCC exempts Indian workers in the U.K. from dual social security contributions, benefiting over 75,000 individuals.
- The U.K. gains phased tariff elimination in India and access to Indian service sectors and central government procurement.
- Key contentious issues like an investment agreement and investor-state dispute resolution were not included in this deal.
Exam Facts
- Agreement: India-U.K. Comprehensive Economic and Trade Agreement (CETA)
- Convention: Double Contribution Convention (DCC)
- Effective date: July 15
- Indian Commerce Secretary: Rajesh Agrawal
- U.K. tariff removal for India: 96.8% of tariff lines immediately
- Indian workers benefiting from DCC: >75,000
- India's tariff removal for U.K.: 30.3% of trade value immediately, 47% phased
- Automobile tariff reduction: 20,000 vehicles at 30-50% tariff in first year, reducing to 10% by fifth year.
Read it. Retain it. Recall it.
Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.