India, UK set up panel to resolve trade barriers in new free trade pact
This move is aimed at ensuring that plant, animal, and food safety rules do not become unjustified obstacles to market access, while also allowing the two sides to protect public health based on scientific principles.
Given the high degree of UK safety stipulations and relatively lax Indian regulations, enforcement of these measures is expected to address problems such as fertilizer residues in Indian agricultural exports.
According to the FTA document, the agreement grants India duty-free access to over 95% of the UK's estimated $85–88 billion agricultural imports in 2024.
Indian agri and processed food exports to the UK are projected to increase by over 50% in the next three years as a result of these tariff concessions, bringing Indian products on par with those from the EU, South Africa, Turkey, Canada, Peru and Vietnam, who currently enjoy preferential access to the UK market.
The first meeting of the SPS Subcommittee is expected within a year of the FTA's entry into force, with subsequent annual meetings unless otherwise agreed.
According to exporters, the introduction of the new SPS framework is a welcome step and would go a long way in boosting agricultural exports. By bringing greater clarity, predictability and global alignment, it helps address long-standing challenges such as inspection delays and shipment rejections.
For exporting basmati rice to Europe, where only pesticide-free rice is permitted, each shipment requires an EIA (Export Inspection Agency) approval certificate prior to dispatch—a process that can take 10 to 15 days and which impacts shipment timelines.
"This development is expected to facilitate smoother clearances, helping preserve the quality and shelf-life of our premium basmati rice in international markets. The emphasis on transparency and scientific validation will also enhance global confidence in Indian agri-exports. Also, mutual recognition of certifications will simplify processes and reduce compliance-related costs," said Amit Goel, founder and chief executive officer (CEO), Noida-based KNAM Foods (P) Ltd.
According to trade experts, the progressive policy can strengthen India's standing in the global trade and support exporters reach global consumers more efficiently and reliably.
The move will provide a forum to exchange information on each country's sanitary and phytosanitary regulatory system. Additionally, under the trade deal, the two countries would identify and provide opportunities to identify initiatives to strengthen bilateral technical cooperation.
"The decision to establish a dedicated subcommittee on Sanitary and Phytosanitary (SPS) Measures under the India–UK FTA is a welcome step. However, given the significant differences in the two countries' SPS systems, progress is likely to be slow. To avoid prolonged and inconclusive discussions—as has often been the case in past—the two sides should prioritize their top 100 agricultural export items and commit to a clear timeline for resolving SPS issues. This targeted, time-bound approach would help unlock meaningful trade gains without getting lost in regulatory complexity," GTRI (Global Trade Research Initiative), founder, Ajay Srivastava said.
In FY25, the total value of agri exports to the UK was $784.57 million. India exported $22.77 million worth of edible oils to the UK while importing just $1.35 million in FY25. Exports of fish, meat and processed seafood stood at $104.08 million, with imports at $2.04 million. Cereals, vegetables, fruits and spices accounted for $581.62 million in exports and $9.43 million in imports. However, in the category of live animals and related products, India imported $10.6 million from the UK but exported only $0.26 million.
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