UK, India vow enhanced trade ties, adopt 10-year road map
At a virtual summit, PM Modi and his UK counterpart Johnson pledge to double bilateral trade by ’30
India and the UK on Tuesday launched an Enhanced Trade Partnership that envisages facilitating market access in specific sectors, and unveiled plans to finalise an interim trade deal by mid-2022 as a precursor to a free trade agreement.
At a virtual summit between Prime Minister Narendra Modi and his UK counterpart Boris Johnson, the two sides also set a target for doubling bilateral trade by 2030 and adopted the Roadmap 2030 to elevate ties to a comprehensive strategic partnership over the next decade.
The Enhanced Trade Partnership, part of the UK’S efforts to ramp up trade ties with countries around the world following its exit from the European Union (EU), will see Britain open up its fisheries sector to more Indian players, facilitate more opportunities for nurses, recognise Indian seafarers’ certificates and enter into a joint dialogue on a social security agreement.
In return, India lifted restrictions to enable British fruit producers to export their produce to the country and improved access for medical devices through the acceptance of the “UK Certificates of Free Sale”. The two sides
NEW DELHI:
will also work towards reciprocal opening up of legal services.
“Had a productive Virtual Summit with my friend UK PM Boris Johnson. We adopted an ambitious Roadmap 2030 for elevating India-uk ties to a Comprehensive Strategic Partnership,” PM Modi tweeted.
These actions are likely to generate some 25,000 new direct and indirect jobs in India, Sandeep Chakravorty, joint secretary (Europe West) in the external affairs ministry, told a news briefing.
The virtual summit was held after Johnson cancelled a state visit to New Delhi twice because of the Covid-19 situation – first in January to focus on an outbreak in the UK and in April due to the second wave of infections in
India. Ahead of the summit, Johnson announced a trade and investment package with India worth £1 billion, including a £240-million investment by the Serum Institute of India (SII) in the UK. Johnson informed Modi about SII’S investment and manufacture of vaccines in the UK, especially research on nasal vaccines, Chakravorty said. He noted SII is a multinational company that has a presence in the Netherlands and plans to manufacture vaccines in other countries.
Following the launch of the Enhanced Trade Partnership, the two sides agreed to frame a roadmap for pre-free trade agreement (FTA) talks by end of this year, finalise an interim trade deal by early or mid-2022, and conclude talks for an FTA “at an early date”, Chakravorty said.
Chakravorty described the launch of Roadmap 2030 as a “big deliverable” of the summit that is in line with the vision of the two leaders to elevate India-uk ties into a comprehensive strategic partnership.
The roadmap lists several activities and initiatives to be pursued by the two sides in five key areas – trade and economy, defence and security, climate action, health and people-to-people contacts – over the next decade. The two countries also signed eight agreements, including a memorandum of understanding (MOU) on a migration and mobility partnership that will facilitate legal movement of students and professionals and strengthen cooperation in combating illegal migration. The MOU creates a new scheme under which up to 3,000 young Indian professionals can every year avail of employment opportunities in the UK for two years without being subject to a labour market test.
The other agreements covered emerging technologies, digital infrastructure and data policies, cooperation in telecommunications and ICT, customs cooperation, and cooperation on medical products regulation.
Modi and Johnson agreed to advance defence ties to a new level, with focus on maritime and industrial collaboration. They agreed to new cooperation on maritime domain awareness, including new agreements on maritime information-sharing. The UK was invited to join India’s naval information fusion centre and an exercise programme that includes tri-lateral exercises.
India and the UK are also working to conclude a Logistics Memorandum of Understanding between their armed forces. They will build on existing collaboration on India’s future combat air engine requirement by working together on the indigenous development of the Light Combat Aircraft Mark 2.
READ: UK PM announces new £1bn trade deal with India