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UK Trade Secretary optimistic on India-UK FTA
India has raised concerns regarding the fairness of rules applied to Indian workers temporarily transferred to the UK on business visas
UK Secretary of State for Business and Trade, Kemi Badenoch in conversation with Creon Butler, Director, Global Economy and Finance Programme, Chatham House. / Screengrab of the video
UK Secretary of State for Business and Trade, Kemi Badenoch, expressed optimism about the possibility of concluding a Free Trade Agreement (FTA) with India before the upcoming general election in the country.
Speaking at a Global Trade conference hosted by the think tank Chatham House, Badenoch highlighted the challenges posed by India's "protectionist economy" in contrast to the UK's more liberalized regime.
The FTA, currently in its 14th round of negotiations since January 2022, aims to significantly enhance the existing £36-billion bilateral trading partnership between the two nations.
The UK's key priorities in the negotiations include urging India to substantially reduce tariffs on UK exports, particularly in sectors such as food, automobiles, and whisky, where tariffs can currently reach as high as 150 percent.
On the other hand, India has raised concerns regarding the fairness of rules applied to Indian workers temporarily transferred to the UK on business visas. Despite their contributions, these workers are required to pay national insurance without being eligible for UK pensions or social security benefits.
Badenoch stressed her commitment to ensuring a "commercially meaningful" agreement rather than pursuing a deal solely for political optics ahead of the Indian election.
“Our free trade agreements are helping us make the right choices because they are all about diversification and resilience. That is what the Indo-Pacific tilt is about, but we need to make sure that the facts are out there,” she said.
The 13th round of talks concluded on Dec. 15, 2023, with both sides expressing hope that the ongoing 14th round would result in a mutually beneficial agreement. Badenoch acknowledged the differences in trade philosophies, stating, "India is still very protectionist where we are very, very liberalized."
While acknowledging the potential for a pre-election agreement, Badenoch remained cautious, saying, “We can actually sign an agreement before the Indian election. I suspect that that is not necessarily going to be the case because I don't want to use any election as a deadline.”
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