UK and India set to talk trade
DIALOGUE ON POTENTIAL DEAL TO BEGIN IN AUTUMN AS BOTH SIDES LOOK FOR ‘EASY WINS’
BRITAIN and India will begin formal free trade deal talks later this year, the UK government said on Tuesday (4), after they agreed an initial package to boost bilateral trade and investment.
With its large population and growing economy, India has been high on London’s list of trade deal targets since Britain left the European Union last year.
Under a post-Brexit “Global Britain” strategy, prime minister Boris Johnson’s government is pivoting its foreign policy priorities towards the Asia-Pacific region, signing trade deals with countries including Japan and Singapore.
Liz Truss, the UK international trade secretary, said India and Britain would start negotiations on an agreement “in the autumn”, following the announcement of a preliminary “Enhanced Trade Partnership” deal.
“We want to get these negotiations completed as soon as possible,” she told Sky News while touting the partnership package worth £1 billion. “Of course, FTAs (Free Trade Agreements) take longer. This is the immediate gains that we can get for both countries, driving jobs here in Britain and in India.”
Truss said both countries were looking for “early wins” in reducing barriers to trade from an FTA, noting Britain wants tariffs lowered or removed on various exports to India, from cars to whiskey.
Her comments come ahead of virtual talks between Johnson and his Indian counterpart Narendra Modi later on Tuesday as Eastern Eye went to press.
That follows Johnson postponing for a second time an official visit to India last month, due to the worsening coronavirus situation there.
The partnership announcement includes lower trade barriers for some UK exports such as fruit and medical devices.
It also features investment in Britain by vaccine maker the Serum Institute of India, which could eventually see more of its inoculations made in the UK (see page 18). Johnson’s office said it expects the deal preceding FTA talks to create more than 6,500 jobs.
Talks are due to resume between India and the EU on a free-trade deal later this month, eight years after 16 rounds of talks ended in deadlock.