The newly elected Labour government in the UK has announced plans to resume negotiations for a Free Trade Agreement (FTA) with India. Business and Trade Secretary Jonathan Reynolds outlined the government’s strategy for international trade, emphasizing the importance of economic growth.
The aim is to secure high-quality trade deals that will open up international markets for British businesses and create new job opportunities.
Reynolds stated that boosting trade with other countries is crucial for strengthening the UK economy. He highlighted the government’s commitment to starting negotiations with global partners, focusing on opportunities that will benefit UK businesses. The government’s trade program includes ambitious plans to engage with various regions, including India and the Gulf countries.
The UK and India began talks on the FTA in January 2022 under the previous Conservative government. Since then, 13 rounds of discussions have taken place to improve the 38.1 billion Euro annual trade between the two countries.
Reynolds plans to continue these discussions, picking up from where they left off in the fourteenth round, which was paused due to elections in both countries.
India is expected to become the world’s third-largest economy by 2027. A trade agreement would offer UK businesses better access to India’s growing middle-class market, which is projected to reach over 250 million consumers by 2050. The announcement follows a recent visit by Foreign Secretary David Lammy to India, where he discussed economic and global security issues.
Natarajan Chandrasekaran, Chairman of Tata Sons, welcomed the government’s swift action to restart trade talks. The Tata Group, a major investor in the UK, supports efforts to strengthen the economic ties between India and the UK. He emphasized the deep historical connections between the two nations and the benefits of a close economic partnership.
In addition to India, the Department for Business and Trade (DBT) is also working on trade deals with the Gulf Cooperation Council (GCC), Israel, South Korea, Switzerland, and Turkey. The goal is to kick-start negotiations with these countries as soon as possible, with the first round of talks expected to begin in the autumn.
The DBT is also preparing a trade strategy that aligns with the government’s industrial goals. This strategy aims to enhance economic security and support the UK’s commitment to net-zero emissions. The department believes that Free Trade Agreements (FTAs) are just one way to drive economic growth and is working on ways to improve trade relations with the European Union (EU) as well.
The UK remains a major global exporter, with exports totaling 855 billion euro in 2022. The government is dedicated to using all available resources to help British businesses expand their reach and sell their products worldwide.
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