UK plans tariff cut on Indian exports

THE £40 MN TARIFF CUTS COULD BE A PRECURSOR TO A BILATERAL FTA, SAY UK OFFICIALS

LONDON: Seen as a ‘building block’, the UK’s new Global Tariff (UKGT) schedule is expected to boost trade by reducing tariff on Indian exports by up to £40 million per year, as the Boris Johnson government plans a trade scale-up when Brexit is completed on December 31.

This and other key issues were discussed last week at the 14th bilateral annual meeting of the Joint Economic and Trade Committee (Jetco), which is usually less noticed but assumed importance given that it is the last such meeting before the UK begins trading as an independent country, post-Brexit, from January 1.

Five sectors have been identified for enhanced focus with India: life science and health, information and communications technology, food and drink, chemicals and services. Bilateral trade is currently worth £24 billion, but India is not yet among the UK’s top 10 trading partners.

Officials say the idea is to build towards an eventual signing of a free trade agreement with India, which has often been mentioned by Prime Minister Boris Johnson and other proBrexiteers as a key market.

Jetco, now in existence for 15 years, is the UK’s longest standing meeting of its kind. It was attended by commerce minister Piyush Goyal, minister of state Hardeep Puri, and international trade secretary Liz Truss and minister Ranil Jayawardena.

“The UK’s new Global Tariff (UKGT) schedule serves as a ‘building block’ towards an increasingly open trade partnership. Assuming all tariffs are levied, the UKGT could boost trade flows by reducing tariffs on Indian exports by up to £40 million per year’, a UK statement after the meeting said.

“Alongside this, UK companies have secured recognition and registration of polyhalite, a multi-nutrient fertiliser mined in the UK, which will enable UK exports and help Indian farmers to increase crop yields while supporting a cleaner, greener and sustainable environment”.