Thomas: UK must prioritise trade talks with India
THE UK is falling behind other G7 nations in securing trade in goods with India according to figures from the House of Common’s Library.
While the UK has increased trade in services with India by 10 per cent in the past five years, it has managed only a five per cent increase in trade in goods over the same period.
The figures, revealed by Shadow trade minister Gareth Thomas MP in the Commons, show that other developed nations of the G7 have seen their trade in goods with India, one of the world’s fastest growing economies, increase between 15 per cent and 42 per cent.
To increase the UK’s goods trade with India the Foreign Affairs Committee recommended in its report ‘Reawakening Ties With India’, that “the Government should appoint a high-level and long-term dedicated trade envoy to India, with experience of the country’s business environment.”
However, the government is yet to take heed of the report’s recommendation and the UK does not currently have a trade envoy to India.
The Foreign Affairs Committee report, which was published in June last year, cited that the Governement should “prioritise trade talks with India” and work on removing barriers to trade such as limits on the movement of people which “are a major constraint on UK-India ties.”
Thomas said, “It’s extraordinary that ministers are so complacent about British trade with one of the biggest emerging markets in the world. Other G7 countries are prioritising helping their businesses win contracts in India and have seen huge leaps in levels of trade.”
“Ministerial inaction is holding Britain back and they should prioritise trade with the Indian subcontinent to help create more of the jobs that our country desperately needs,” Thomas noted.