India and UK Agree to Establish Sub-Committee on Sanitary and Phytosanitary Measures Under Free Trade Agreement

Strategic Insights -

India and the UK have agreed to establish a subcommittee on Sanitary and Phytosanitary (SPS) measures under their Free Trade Agreement (FTA). The subcommittee aims to ease regulatory hurdles in the agricultural and food trade, ensuring food safety norms do not become unnecessary barriers to trade while upholding public health standards based on scientific principles. This new development is expected to help resolve issues like fertilizer and pesticide residue that have affected exports in the past. The UK's stringent safety norms have often led to Indian agricultural exports falling short of its requirements, but the new SPS framework is expected to streamline the process.

Key Takeaways:

  • India and the UK will establish a subcommittee on Sanitary and Phytosanitary (SPS) measures under their Free Trade Agreement (FTA) to ease regulatory hurdles in the agricultural and food trade.
  • The subcommittee will ensure food safety norms do not become unnecessary barriers to trade while upholding public health standards based on scientific principles.
  • The UK's stringent safety norms have often led to Indian agricultural exports falling short of its requirements, particularly in issues like fertilizer and pesticide residue.
  • The new FTA offers India duty-free access to over 95 per cent of the UK's projected USD 85-88 billion agricultural imports in 2024.
  • India's agri and processed food exports to the UK are expected to grow by over 50 per cent in the next three years, bringing them at par with countries like the EU, South Africa, and Vietnam.
  • The SPS subcommittee will hold its first meeting within a year of the FTA's enforcement and continue annual discussions.
  • Exporters have welcomed this development, noting that it will enhance clarity, reduce shipment delays, and align India's standards with global practices.
  • The focus will now be on resolving SPS issues on priority export items, which is essential to achieving meaningful progress.
  • In FY25, India's total agri exports to the UK were valued at USD 784.57 million, with cereals, spices, and seafood making up a major share.
  • Trade experts believe a focused approach to resolving SPS issues will be key to achieving meaningful progress.

Statistics:

  • India's agri and processed food exports to the UK are expected to grow by over 50 per cent in the next three years.
  • In FY25, India's total agri exports to the UK were valued at USD 784.57 million.
  • The new FTA offers India duty-free access to over 95 per cent of the UK's projected USD 85-88 billion agricultural imports in 2024.
  • Basmati rice exports, which currently require time-consuming inspections, may benefit from quicker clearances due to the new SPS framework.
  • The SPS subcommittee will hold its first meeting within a year of the FTA's enforcement.

Sources:

  • Published by HT Digital Content Services with permission from KNN (Knowledge & News Network).