United Kingdom Prime Minister Keir Starmer has announced plans to relaunch the Free Trade Agreement (FTA) talks with India early next year, following a bilateral meeting with Prime Minister Narendra Modi on the sidelines of the G20 Summit in Brazil. The announcement demonstrates a renewed push to deepen ties between the two nations across key sectors. Downing Street outlined the UK’s intention to establish a new strategic partnership with India, focusing on a comprehensive trade agreement and enhanced collaboration in security, education, technology, and climate change.
A spokesperson for Starmer reaffirmed the UK’s commitment to pursuing a robust trade deal with India, acknowledging the country’s status as one of the world’s fastest-growing economies. "A new trade deal with India will support jobs and prosperity in the UK -- and represent a step forward in our mission to deliver growth and opportunity across our country," a statement released by 10, Downing Street, quoted Starmer as saying after the bilateral meeting.
Downing Street on India-UK trade talks
On the India-UK trade talks, Downing Street revealed the Department for Business and Trade (DBT) would soon unveil the government's new trade strategy that would be aligned with its industrial strategy to help inform all future trade negotiations and achieve long-term sustainable, inclusive and resilient growth through trade. "India is the fifth largest economy in the world and a vital trading partner for the UK. We believe there is a good deal to be done here that works for both nations," said UK Business and Trade Secretary Jonathan Reynolds. "Whether it's lowering Indian tariffs to help British firms export to this dynamic market or boosting investment which already supports over 6,00,000 jobs across both countries, striking a deal is important to deliver this government's core mission of driving economic growth," he added.
India-UK Free Trade Agreement
It should be mentioned here that India and the UK have been negotiating a Free Trade Agreement since January 2022, with talks paused during general elections in both countries earlier this year. According to the latest statistics, the bilateral trade relationship was worth GBP 42 billion in the 12 months to June. An FTA is expected to significantly boost the figure. The Labour Party government in the UK is keen to highlight a trade friendly message as a means to deliver a strong economy at home.
What is Free Trade Agreements?
Free Trade Agreements (FTAs) are formal arrangements between two or more countries or trading blocs aimed at promoting economic integration by reducing or eliminating barriers to trade. These barriers typically include customs tariffs, quotas, and non-tariff barriers, facilitating a freer flow of goods and services between the signatory parties. FTAs generally cover trade in goods (such as agricultural or industrial products) or trade in services (such as banking, construction, trading etc.). FTAs may also include several other areas such as investment, competition policy, and government procurement etc.
(With inputs from PTI)
