The UK and India have relaunched free trade talks after a year-long pause, focusing on issues like access to telecom and skilled migration policies. Despite extensive discussions, an agreement remains elusive. UK officials are eager to tap into India’s growing economy, while India seeks to protect its tariffs and maintain immigration policies outside of these negotiations.
The UK and India have resumed negotiations for a free trade agreement (FTA) after a year-long hiatus caused by elections in both nations. UK Trade Secretary Jonathan Reynolds and Indian Commerce Minister Piyush Goyal met in New Delhi to discuss a deal that they aim to make “balanced, ambitious, and mutually beneficial.” Despite over a dozen rounds of talks since 2022, no agreement has yet been reached.
The UK seeks to enhance economic growth by tapping into India’s fast-growing economy, projected to be the third-largest globally by 2028. Investment Minister Poppy Gustafsson will head investment initiatives in Mumbai and Bengaluru, as outlined by the Department for Business and Trade. Reynolds stressed the importance of securing this trade deal, noting it is essential for the UK government.
India has consistently been the second-largest source of foreign direct investment for the UK, with a notable 28% rise in investment stock in 2023. Presently, the trade relationship between the UK and India amounts to £41 billion, supporting over 600,000 jobs across both countries. However, no timeline for concluding negotiations was provided after their meeting, which echoes previous stalled negotiations under former PMs Boris Johnson and Liz Truss.
During the press conference, Goyal defended India’s tariff policies as necessary for protection against unfair trading practices, though he recognized the potential for mutual tariff reductions with the UK. He also emphasized India’s stance against involving immigration in trade talks while advocating for a more liberal visa regime for skilled workers. Key sticking points include access to India’s telecom, legal, and financial sectors, alongside demands for lower tariffs on whiskey and autos.
Richard Heald, chair of the UK India Business Council, expressed optimism about the negotiations, stating that a successful FTA would foster further economic growth and collaborative opportunities, marking the UK and India as strategic partners in a new chapter of their relationship. Overall, these discussions represent significant moves toward enhancing bilateral trade relations between the two countries.
In summary, the UK and India have restarted free trade discussions with the aim of enhancing their economic relationships. While both parties recognize the potential benefits of the trade deal, there are notable disputes over issues like tariff policies and access to certain sectors. The importance of a successful FTA is emphasized by business leaders, signaling the desire for a strong strategic partnership.
Original Source: www.independent.co.uk
