CETA vs FTA vs CEPA
Classifying Trade Agreements
A Free Trade Agreement (FTA) chiefly eliminates or reduces tariffs on goods between two or more parties. A Comprehensive Economic and Trade Agreement (CETA) or Comprehensive Economic Partnership Agreement (CEPA) goes further, covering goods, services, investment, intellectual property, government procurement, and regulatory cooperation in a single integrated instrument. India-UK CETA entered into force on 15 July 2026, becoming one of the UK's most economically significant bilateral trade pacts since it left the European Union.
- India opened roughly 89.5% of its tariff lines, granting the UK access covering about 91% of its export basket, while keeping sensitive/strategic sectors protected
- In return, around 99% of Indian tariff lines get duty-free entry into the UK, benefiting labour-intensive sectors (textiles, leather, marine products, gems and jewellery, toys) as well as engineering goods, chemicals, and auto components
- India has separately signed CEPAs (e.g., with UAE, Australia) and is negotiating others; CETA is the nomenclature India and the UK chose for their agreement
- A parallel Double Contribution Convention (DCC) also came into force alongside CETA on 15 July 2026, addressing social security contributions for short-term workers moved between the two countries
● Tracked since July 16, 2026 · last seen September 04, 2026 · updates as the daily brief publishes
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