UK to start trade talks with India by the end of 2021
A trade accord with India can be seen as a keen target for post-Brexit Britain. The country has been particularly pursuing ties with nations in the Indo-Pacific region which is home to some of the fastest-growing economies.
The United Kingdom said on August 17, 2021, that it aims to start the trade negotiations with India by the end of 2021.
A spokesperson for Britain’s Department for International Trade informed that UK is currently in the pre-negotiation scoping phase of an FTA (Free-Trade Agreement), with an aim of starting the negotiations by the end of this year.
A trade accord with India can be seen as a keen target for post-Brexit Britain. Prime Minister of the United Kingdom, Boris Johnson had earlier reluctantly called off his trip to India in April 2021 after COVID-19 cases were on the peak in India.
Why trade deal with India will be significant for the UK?
According to the spokesperson for Britain’s Department for International Trade, with bilateral trade valued at 23 billion pounds in 2019, a trade deal with India will help to boost British exports through lower tariffs as well as increased opportunities.
Ever since completing its exit from the European Union at the end of 2020, Britain has been keen to secure trade deals and has been particularly pursuing ties with nations in the Indo-Pacific region which is home to some of the fastest-growing economies.
UK’s ‘interim’ trade deal with India:
The Government of the United Kingdom has also been looking at wrapping up a quick ‘interim’ trade deal with India, which can see tariffs slashed on products such as Scotch, Whisky before a full agreement is in place.
The Government of Britain will try to strike an interim agreement that will allow for free trade between India and the UK under the terms of a World Trade Organisation Charter.
The producers in India for products such as rice will be able to get greater access to the UK market under the interim deal between the two countries.
In May 2021, British Government had informed that it will be launching a 14-week consultation on the future trade deal with India. The government was planning on seeking views from the public and businesses on the deal.