Restarting talks with international partners such as India is the first step towards agreeing high-quality trade deals the UK needs to give businesses access to international markets, boost jobs and deliver economic growth, the UK government has said.
Setting out the Labour government trade priorities this week, the Department for Business and Trade (DBT) said the free trade agreement (FTA) negotiations with India will resume as soon as possible to achieve an ambitious outcome. India, with which the UK has been negotiating an FTA and Bilateral Investment Treaty for over two years, is projected to be the world’s third largest economy by 2027. A trade deal would give UK businesses better access to its burgeoning market of middle-class consumers, projected to grow to over a quarter of a billion consumers by 2050, DBT noted.
UK Business and Trade Secretary Jonathan Reynolds, who met his Indian counterpart Piyush Goyal at the G7 Trade Ministers’ Meet in Italy in mid-July (pictured above), 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.
“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.
“Our teams will be entering negotiating rooms as soon as possible, laser-focused on creating new opportunities for UK firms so they can support jobs across the country and deliver the growth we desperately need.”
According to his ministry, this announcement will kickstart the process of getting negotiators back into the room with counterparts as soon as possible, with the first round of trade talks under the new government expected to take place during the Autumn.
MORE LIKE THIS…
N. Chandrasekaran, Chairman of Tata Sons, said: “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. And as two of the world’s greatest trading nations with deep historical ties, India and the UK should be close economic partners, to the benefit of the citizens and businesses of both countries.”
With exports totalling £855 billion, the UK was the world’s fourth-largest exporter in 2022. High-quality British goods and services are admired globally, and the government is committed to using every lever available to help British businesses sell around the world, the DBT stated.
The newly elected Labour government has set out its intention to deliver trade talks, starting with India, the Gulf Cooperation Council (GCC), Israel, South Korea, Switzerland and Turkey. It said it is putting economic growth at the heart of everything it does to improve the livelihoods of hardworking British people.
Noting that FTAs are not the only tool to drive economic growth, the government also plans to publish a trade strategy which aligns with the industrial strategy, enhances economic security and supports net zero ambitions.
MORE LIKE THIS…
Marco Forgione, Director General of the Chartered Institute of Export & International Trade, added: “The news that the government has kicked off trade talks with these key economies so quickly is extremely positive. Making international trade easier and helping more UK businesses expand into international markets is central to getting growth into the economy.
“We know there’s real business interest in making international trade easier and we stand ready to work with the department to ensure businesses, particularly SMEs, are armed with the know-how to turn these opportunities into reality.”