NEW DELHI (Diya TV) — The United Kingdom and India relaunched trade negotiations on February 24 to agree on a free trade pact in an attempt to boost significantly the bilateral investment and trade relationship between the countries. Indian Commerce and Industry Minister Piyush Goyal and UK Business and Trade Secretary Jonathan Reynolds made this announcement in New Delhi.
The talks have been suspended since March 2024 because of general elections in the two countries. The urgency is renewed partially because of global economic uncertainties such as recent tariff threats issued by U.S. President Donald Trump, which have pushed the two countries to look for a strong bilateral trade arrangement.
An important breakthrough in these negotiations is excluding immigration from the FTA agenda, resolving one of the important sticking points previously holding back momentum. Minister Goyal highlighted, “They are two entirely different topics, and India never negotiated immigration in any free trade agreement negotiations.” Secretary Reynolds agreed, highlighting that although the UK appreciates its relationship with Indian nationals for study and business reasons, “business mobility is a distinct topic to immigration.
The FTA is expected to overdo two-way trade in the coming decade. To date, bilateral trade between India and the UK has been £41 billion ($52 billion) as of September 2024. Some of the key items on the negotiating table are lowering the tariffs on British whisky, a long-standing UK demand, and allowing business visas to grow corporate mobility between the two countries.
The two nations are also negotiating a standalone social security treaty to further enhance their economic cooperation. UK Investment Minister Poppy Gustafsson will meet investors in Mumbai and Bengaluru to boost bilateral economic relations.
