UK begins free trade agreement talks with India

The UK is touting the India FTA as a major move since its exit from the European Union (Representational)

London: The UK government on Thursday announced the start of Free Trade Agreement (FTA) talks with India, calling it a “golden opportunity” to put British businesses “at the front of the queue” of the Indian economy.

British Prime Minister Boris Johnson said an FTA would take the country’s historic partnership with India to the next level, and Scotch whisky, financial services and cutting-edge renewable technology are set to benefit in some key areas.

The first round of talks is expected to begin next week, in what the British government said would be Britain’s fastest start of formal talks between the negotiating teams since the start.

“A trade deal with India’s booming economy offers enormous benefits for British businesses, workers and consumers. As we take our historic partnership with India to the next level, the UK’s free trade policy creates jobs across the country.” creating, raising wages and driving innovation,” Johnson said.

“The UK has world-class business and expertise that we can be proud of, from Scotch whiskey distillers to financial services and cutting-edge renewable technology. We were introduced to cement our place in the growing economies of the Indo-Pacific We are taking advantage of the opportunities. Global platform and provide employment and development at home,” he said.

Johnson’s statement came as his Secretary of State for International Trade, Anne-Marie Trevelyan, to hold a meeting with Union Minister of Commerce and Industry Piyush Goyal for the 15th UK-India Joint Economic and Trade Committee (JETCO) in New Delhi were ready, so that progress could be reviewed. The UK-India Enhanced Trade Partnership was agreed by Prime Minister Narendra Modi and Johnson last May.

“A deal with India is a golden opportunity to put UK businesses at the forefront as the Indian economy continues to grow,” Trevelyan said.

“By 2050, India will become the third largest economy in the world, with approximately 250 million shoppers. We want to open up this vast new market for our great British producers and manufacturers across a range of industries from food and beverage to services and automotive , ” He said.

“As an independent, bargaining nation, the UK is expanding our economic horizons and forging strong partnerships with the world’s fastest growing economies. India marks the start of our ambitious five-star year of UK business.” It symbolizes and will show how the deals we negotiate will boost economies in all countries and help lift all sectors of the UK.”

An India-UK FTA is billed in the UK, which creates huge benefits for both countries, with the potential to boost bilateral trade to GBP 28 billion per year by 2035 and raise wages to GBP 3 billion across the UK Is.

A deal with India has also been hailed as a “major step forward” in Britain’s post-Brexit strategy to restart trade on the Indo-Pacific, home to half the world’s population and global warming. 50 percent of economic growth.

The Department for International Trade (DIT) has said the UK wants an agreement that would reduce barriers to trade and trade with India’s 2 trillion GBP economy and market of 1.4 billion consumers, including British-made cars and Scotch whisky. Deduction of duty on exports is included.

“We are delighted to see the start of the FTA negotiations between the UK and India. With India, a fast-growing global economic powerhouse, this trade deal could open a new era of partnership and open up a new era of partnership between UK and Indian businesses. This could pave the way for significant trade and investment opportunities for India, said Lord Karan Billimoria, President of the Confederation of British Industry.

“To fully realize the growth potential, the UK must focus on areas that will drive our future economic success, such as collaborative innovation and strong regulatory alignment. Above all, trade is economic across all regions and countries. It is an important instrument for development and prosperity,” he added.

According to DIT estimates, the removal of the duty alone would increase UK exports to India by up to GBP 6.8 billion, with Scotch whiskey and cars currently facing hefty duties of 150 per cent and 125 per cent respectively.

Mike Howes, chief executive of the UK’s Society of Motor Manufacturers and Traders, said: “The key to any future trade relationship will be to progressively remove tariffs, increase trade facilitation and reduce other barriers to trade, which are highly can be complicated and cumbersome.”

The DIT analysis claims that a trade deal with India would benefit all parts of the United Kingdom, noting that in 2019 around 30,000 people were employed in the West Midlands through Indian investments. The northern region of England can see huge increases of up to GBP 300. Millions of opportunities for manufacturers of motor vehicles and parts.

The government’s plan to install 175 GW of renewable power capacity by 2022 is also seen as a major opportunity for the UK’s renewables industry, which is expected to benefit from a deal that would reduce tariffs such as import duties on wind turbine parts. Reduces odds by up to 15 percent. ,

India has been touting the FTA as a major step since Britain exited the European Union (EU) in support of free and fair trade in the Indo-Pacific. In addition to membership of the GBP 8.4 trillion comprehensive and progressive agreement for the Trans-Pacific Partnership trade bloc, the launch of similar talks with Canada, Mexico and the Gulf is in the pipeline.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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