Context:
The India–U.K. Comprehensive Economic and Trade Agreement (CETA) and Double Contribution Convention (DCC) have come into effect. The agreements seek to expand bilateral trade, investment, services and professional mobility.
Explanation:
- A Free Trade Agreement (FTA) reduces tariffs and non-tariff barriers between participating countries without creating a common external tariff.
- Under CETA, the U.K. immediately eliminates duties on 96.8% of tariff lines, representing 97.7% of trade value.
- Another 2% of U.K. tariff lines receive concessions through tariff-rate quotas; overall liberalisation covers 98.8% of tariff lines.
- India immediately removes duties on 30.3% of tariff lines, while another 47% will be liberalised gradually.
- India protects sensitive sectors, including dairy, cereals, pulses, vegetables, gold jewellery and automobiles.
- The pact covers goods, services, investment, digital trade, intellectual property and government procurement.
- The Double Contribution Convention (DCC) prevents temporary Indian workers and employers from paying social-security contributions in both countries.
- The exemption applies for up to five years, provided contributions continue in India.
- SPS (Sanitary and Phytosanitary) and Technical Barriers to Trade (TBT) measures must not become unjustified trade restrictions.
La Excellence IAS Academy, the best IAS coaching in Hyderabad, known for delivering quality content and conceptual clarity for UPSC 2026 preparation.
FOLLOW US ON:
◉ YouTube : https://www.youtube.com/@CivilsPrepTeam
◉ Facebook: https://www.facebook.com/LaExcellenceIAS
◉ Instagram: https://www.instagram.com/laexcellenceiasacademy/
GET IN TOUCH:
Contact us at info@laex.in, https://laex.in/contact-us/
or Call us @ +91 9052 29 2929, +91 9052 99 2929, +91 9154 24 2140
OUR BRANCHES:
Head Office: H No: 1-10-225A, Beside AEVA Fertility Center, Ashok Nagar Extension, VV Giri Nagar, Ashok Nagar, Hyderabad, 500020
Madhapur: Flat no: 301, survey no 58-60, Guttala begumpet Madhapur metro pillar: 1524, Rangareddy Hyderabad, Telangana 500081
Bangalore: Plot No: 99, 2nd floor, 80 Feet Road, Beside Poorvika Mobiles, Chandra Layout, Attiguppe, Near Vijaya Nagara, Bengaluru, 560040
India UK CETA: Expanding Trade and Strategic Cooperation