MEMBERS of the House of Lords debated the Comprehensive Economic and Trade Agreement (CETA) between the United Kingdom and India on Wednesday (4).
The debate in the Grand Committee was introduced by Labour peer Lord Goldsmith, who moved “that the Grand Committee takes note of the Comprehensive Economic and Trade Agreement between the United Kingdom and the Republic of India, laid before the House on 21 January”.
The free trade agreement between the UK and India was signed in July 2025 after negotiations from 2022 to 2025.
Lord Goldsmith said concluding the deal with India was significant. “India sits behind high-tariff and non-tariff barriers to trade and is a formidable negotiating partner with a history of protectionism,” he said.
He told peers that the agreement improves access for UK exporters. “For exporters, it delivers tariff reductions on 90% of Indian tariff lines, while the UK will eliminate tariffs on 99% of Indian imports.”
However, he said benefits for UK exporters would take time. “India will reduce its barriers to UK exports only gradually, over a period of some 15 years.”
Lord Goldsmith also said the agreement lacked provisions in some areas. “There is no bilateral investment treaty. There are no arrangements on legal services… There is no new market access in financial services and no finalised framework for mutual recognition of professional qualifications.”
Conservative peer Lord Howell of Guildford said the agreement should be seen in the context of wider ties between the two countries. “We are talking here not just about another country and another FTA, but a relationship with an enormous country.”
Crossbench peer Lord Hannay of Chiswick said the deal was important but not complete. “Services make up 80 per cent of our economy, hence the need to treat this agreement not as an end point but as a living instrument that can be improved.”
Several peers said businesses would need support to benefit from the agreement. Lord Hannay said gains would come only if the government provided advice and support to companies seeking to enter the Indian market.
The debate also heard that the agreement includes provisions on the temporary movement of professionals between the two countries.
Lord Goldsmith said the provisions were limited and “are unlikely to impact UK-India migration patterns significantly”.
The government response to the debate was delivered by Labour minister Lord Stockwood on behalf of the Treasury and the Department for Business and Trade.
