The Labour government announced on Monday that it will soon restart negotiations for a Free Trade Agreement (FTA) with India as part of its trading priorities.
Business and trade secretary Jonathan Reynolds outlined the department's approach to international trade deals, emphasising economic growth and high-quality agreements that benefit British businesses and boost jobs.
The Department for Business and Trade (DBT) plans to publish a trade strategy aligned with the government's industrial strategy, enhancing economic security and supporting net-zero ambitions.
Reynolds said, “Boosting trade abroad is essential to deliver a strong economy at home. That's why I've wasted no time taking stock of progress and getting ready to press on with trade talks with our international partners.”
Reynolds highlighted the ambitious trade programme, focusing on creating new opportunities for UK firms. “From the Gulf to India, our trade programme is ambitious and plays to the UK's strengths to give British businesses access to some of the most exciting economies in the world,” he said.
Negotiations for an FTA between India and the UK began in January 2022 under the Conservative government, with 13 rounds completed. Reynolds set the tone for the Labour government's plans to continue the process from where it left off, aiming to finalise the deal.
The DBT noted that a trade deal with India would give UK businesses better access to its growing market of middle-class consumers, projected to reach over a quarter of a billion by 2050. This follows Foreign Secretary David Lammy's recent visit to India to discuss economic and global security.
Natarajan Chandrasekaran, chairman of Tata Sons, expressed support for the negotiations: “I am delighted that the new government has moved so quickly to restart trade negotiations with India. As one of the largest international investors in the UK, the Tata Group supports any action that strengthens the British economy.”
The DBT also aims to deliver trade deals with the Gulf Cooperation Council (GCC), Israel, South Korea, Switzerland, and Turkey. The first round of trade talks under the new government is expected to take place in the autumn, starting towards the end of August.
The department stressed that FTAs are not the only tool for driving economic growth through trade. A proposed trade strategy aims to reset the UK's relationship with the European Union (EU) to support more small businesses in exporting by removing unnecessary barriers.
UK exports totalled GBP 855 billion in 2022, making it the world's fourth-largest exporter. The government is committed to using all available means to help British businesses sell globally.
(With inputs from PTI)
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