India and UK Sign Landmark Free Trade Agreement

India has secured a pivotal right to impose temporary trade safeguards under its newly signed free trade agreement (FTA) with the United Kingdom, as confirmed by the commerce ministry. This mechanism enables India to adjust import tariffs or suspend duty concessions in response to a sudden surge in British imports that could harm domestic industries.

The agreement, signed in London, includes provisions for bilateral safeguard measures, allowing India to protect its domestic sectors from significant import surges. These measures can be applied for up to two years, extendable to four if necessary, with conditions to prevent retaliatory actions by the UK within the initial period.

Protecting Sensitive Sectors and Boosting Exports

Commerce Minister Piyush Goyal highlighted the protection of sensitive sectors such as dairy, rice, and sugar, ensuring no compromise on India's interests. The FTA is expected to significantly benefit labor-intensive industries like footwear, textiles, and gems and jewelry, enhancing their export potential.

Additionally, the pact introduces provisional safeguards for urgent situations, providing up to 200 days of protection based on preliminary findings, pending a full investigation. This strategic agreement marks a significant milestone in India-UK trade relations, promising extensive benefits and growth opportunities for both nations.