EU-India FTA 'may need to be reworked following Brexit vote'

Legislation | | MIC Customs Solutions |

India may need to revisit and rework its free trade agreement with the EU following the UK's decision to leave the union.

A proposed free trade agreement (FTA) between the EU and India may need to be revisited and redefined following the UK's Brexit vote.

The UK elected to leave the union by a margin of 51.9 per cent to 48.1 per cent in last week's referendum, throwing the global markets into turmoil. The planned trade deal between the EU and India is one of many that is likely to be reshaped as a consequence.

Commerce secretary Rita Teaotia told PTI that some items included in the FTA specifically in response to British needs are now likely to be removed, though she does not expect the EU will be taking action until it has had more time to come to terms with recent events.

This represents the latest in a series of stumbling blocks and obstacles delaying the progress of the planned EU-India trade deal, which has been discussed since May 2013.

Ms Teaotia also noted that the UK's decision is not expected to affect India's dealings with the country directly, although the currency volatility seen since the vote result was announced is expected to continue.

She said: "Brexit will not impact our trade with the UK. With the EU also, nothing directly affects our trade. In the long term, we would be interested to see how the UK negotiates its exit from the EU."