India-UK FTA Likely Ahead Of Lok Sabha General Election 2024: UK Trade Minister
India-UK free trade agreement is expected to conclude before the upcoming general election in the country.
The free trade agreement (FTA) currently being negotiated between India and the UK is "possible" to conclude before the country's upcoming general election; however, Britain is hesitant to set a firm deadline, said UK Secretary of State for Business and Trade Kemi Badenoch.
The minister who is responsible for finalising the FTA, currently in its 14th round of negotiations, highlighted India’s "protectionist economy" in contrast to the UK’s liberalised framework as a key factor contributing to the long-drawn discussions, as reported by PTI.
Speaking at a Global Trade conference hosted by the think tank Chatham House on Thursday, Badenoch emphasised her desire for a deal that is "commercially meaningful" rather than merely a pre-election picture opportunity. “India is still very protectionist where we are very liberalised,” remarked Badenoch. “I am not interested in just taking a picture and moving on. It has to be commercially meaningful. People need to be able to say ‘ah now I can do this’ like we had with our Australia agreement or with Japan, for example,” she highlighted, referring to FTAs with the two major economies.
Regarding the timeline for concluding talks with India, she added: “We can actually sign an agreement before the Indian election. I suspect that that is not necessarily going to be the case because I don't want to use any election as a deadline." “It is possible that will be done but I am very resistant to deadlines being set on trade negotiations because it runs down the clock. It is very possible that we can sign but I am not using it as a deadline for the work that I am carrying out basically.”
India-UK FTA Aims To Target 36 Billion Great British Pound
India and the UK have been engaged in FTA negotiations since January 2022, aiming to significantly bolster the 36 billion Great British Pound bilateral trading partnership. The 13th round of talks concluded on December 15 last year, with the expectations from both sides that the ongoing 14th round would lead to an agreement.
The UK expects India to substantially lower tariffs on UK exports such as food, cars, and whisky, which can currently reach as high as 150 per cent. Conversely, India is concerned about the fairness of rules applied to Indian workers temporarily transferred to the UK on business visas, who are required to pay national insurance despite not being eligible for UK pensions or social security benefits.
In her keynote speech at the trade conference, Badenoch added: “I have to strike the right balance between embracing the import of goods from developing countries to help them grow with the need to maintain the high standards on quality and safety which the British people rightly expect. We make choices. Our free trade agreements are helping us make the right choices because they are all about diversification and resilience. That is what the Indo-Pacific tilt is about, but we need to make sure that the facts are out there.”
This year's general elections in the UK and India have made it especially important to finalise a trade deal before leaders of both countries launch their campaigns.
Post-Brexit UK Poses Great Opportunity For UK-India Trade Deal: Suella Braverman
A few days back, at the ABP Network's 3rd edition of the Ideas of India Summit, British politician and member of the Parliament Suella Braverman said that India and the UK have an opportunity to collaborate on the world stage.
“There are opportunities for both India and the UK to collaborate and work together on the world stage. That is why the post-Brexit UK heralds a great opportunity for a UK-India trade deal that works for both our nations to double the trade to potentially 86 billion pounds, doubling your exports and increasing UK investments in India, particularly in sectors like infrastructure, renewable energy, healthcare, and education... I believe both nations can secure a mutually beneficial trade deal," she also said.
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