Prime Minister Rishi Sunak has said that a new free trade agreement (FTA) with India will be delivered as part of the UK’s commitment to work with like-minded democracies and enhance ties with the Indo-Pacific region.
Delivering his first major foreign policy speech since taking charge at 10 Downing Street last month at the Lord Mayor of London’s Banquet this week, the British Indian leader also reflected upon his own heritage as he spoke passionately about defending British values of “freedom and openness” around the world.
Sunak said: “I was born in Southampton, a port city the Victorians called the gateway to the world, where the Mayflower set sail, where Spitfires were built and allied troops embarked on D-Day.
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“And just as we look out to the world, so the world often looks to Britain. Like many others, my grandparents came to the UK, via East Africa and the Indian subcontinent and made their lives here.”
On the growing significance of the Indo-Pacific region and UK-India ties, he told the gathering of business chiefs and dignitaries gathered at the historic Guildhall in London that he knows too well the power of investments.
The Prime Minister said: “Before I came into politics, like many of you, I invested in businesses around the world... and the opportunity in the Indo-Pacific is compelling.
“By 2050, the Indo-Pacific will deliver over half of global growth compared with just a quarter from Europe and North America combined. That’s why we’re joining the Trans-Pacific trade deal, the CPTPP, delivering a new FTA with India and pursuing one with Indonesia.”
The UK government’s Department for International Trade (DIT) has confirmed that the next round of FTA negotiations will take place in India next month.
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A DIT spokesperson said: "After five formal rounds of negotiations and intensive talks throughout the Autumn, a sixth round is due to take place in India in December to continue negotiations.
“We will only sign a deal that is fair, reciprocal and ultimately in the best interests of both the countries.”
The government says the UK and India remain committed to working towards the best deal possible for both sides and that progress is good, with the majority of chapters are now closed. Since the Diwali timeline for the UK-India FTA was missed amid political turmoil in the UK, a March 2023 timeline for a “fair and balanced” deal has emerged as a new unofficial goal.