Source · Select Committees · Business and Trade Committee
Recommendation 18
18
Accepted
Significant non-tariff barriers impede UK businesses operating in the Indian market.
Conclusion
The Committee notes that UK businesses face significant non-tariff barriers in the Indian market, including regulatory complexity, inconsistent implementation, limited transparency and state-level frictions, as well as specific barriers such as export health certification requirements and India’s expanding use of Quality Control Orders. The Committee would like to see these barriers reduced and this will be most effectively done by using the new mechanisms established. This will require adequate staffing, resourcing and prioritisation by the Foreign, Commonwealth and Development Office and the Department for Business and Trade. (Conclusion, Paragraph 103)
Government Response Summary
The government says the deal tackles non-tariff barriers, will engage businesses to address challenges utilising the agreement, and will use the formal engagement mechanisms in the deal to resolve issues quickly. DBT has a large in-country team in India and substantial teams based in London focused on FTA implementation and utilisation.
Government Response
Accepted
HM Government
Accepted
As referenced above, this deal goes further than any India has ever signed in tackling non-tariff barriers, and we will actively engage businesses to ensure we hear about challenges utilising the agreement and use the formal engagement mechanisms in the deal to raise and resolve issues quickly, including via the Standards, Technical Regulations and Conformity Assessment Sub-Committee. Entry into force is the start, not the end. The agreement must evolve, and we have a built-in review within five years, and every five years after that, or sooner if agreed. HM Government, primarily through DBT, will ensure that industry has sufficient support and knows how to raise concerns around non-tariff barriers in India, including through mechanisms to gather business feedback on FTA implementation. India has one of the DBT’s biggest in-country overseas teams in the world (only behind the US and China). This consists of sectoral experts who work directly with UK companies to help them to enter, grow and expand into the Indian market. In addition, the team has staff focusing on trade policy, market access, investment promotion, and marketing and communications, as well as specialist attaches on areas like agriculture and intellectual property, under the leadership of HM Trade Commissioner for South Asia. The DBT teams work in partnership with FCDO teams in India, who also have objectives to support UK economic growth. Alongside this, there are substantial teams based in London focused on FTA implementation and FTA utilisation.