UK relaunches free trade talks with India
The flags of India and United Kingdom | INQUIRER FILE PHOTO
London, United Kingdom — Britain on Monday restarted stalled talks with India on reaching a free trade deal post Brexit and in the face of US tariff threats.
Business and Trade Secretary Jonathan Reynolds was meeting counterpart Piyush Goyal in New Delhi “to negotiate a huge economic prize helping to deliver” UK growth, London said in a statement.
Prime Minister Keir Starmer has pushed for renewed talks since his Labour government won power in July and after they stalled under the previous Conservative administrations.
“Securing a trade deal with what is soon-to-be the third biggest economy in the world is a no-brainer, and a top priority for me and this government,” Reynolds said before flying to India for two days of talks.
“Growth will be the guiding principle in our trade negotiations with India and I’m excited about the opportunities on offer.”
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London noted that the UK and India are the sixth and fifth largest global economies respectively, with a trade relationship worth £41 billion ($52 billion) and investment supporting more than 600,000 jobs across both countries.
In previous talks, India has pushed for more UK work and study visas for its citizens in exchange for lowering tariffs on British imports such as whisky.
Starmer’s Downing Street predecessor, Rishi Sunak, took an increasingly tough stance on immigration during his 20-month tenure as he faced a backlash over record migration levels in the wake of the Covid pandemic.
The fresh negotiations come after US President Donald Trump announced new tariffs across a range of sectors, sparking protests from around the world.
Britain has secured a number of trade deals after exiting the European Union in 2020, including with Australia, New Zealand and Singapore.
The UK meanwhile joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in December.
The CPTPP alliance comprises fellow G7 members Canada and Japan, plus long-standing allies Australia and New Zealand, alongside Brunei, Chile, Malaysia, Mexico, Peru, Singapore and Vietnam.
But for Britain, a much sought-after trade deal with the United States remains elusive, and striking an agreement with Canada has faltered.
A deal with India “could unlock new opportunities for businesses and consumers in all regions and nations of the UK, support jobs, boost wages, and back the high-growth sectors… such as advanced manufacturing, clean energy (and) financial services”, Britain’s government added heading into Monday’s talks.
