Britain Opens 14-week Consultation to Fire 'Starting Gun' on FTA
with India
The UK government said on Tuesday, 25 May 2021 that it
has kicked off preparations for a free trade agreement (FTA) with India,
launching a 14-week consultation to seek the views of the public and business
before formal negotiations begin later this year.
UK Trade Secretary Liz Truss said Britain wants a trade
deal with India that pushes new frontiers and welcomes wide input from
consumers and businesses across all sectors, which will help craft a deal that
includes closer cooperation in "future-focused industries" such as
science, technology and services, creating high-value jobs across the country.
"We're firing the starting gun on a free trade deal
with India - the world's largest democracy, fifth-biggest economy, a nation of
1.4 billion people and a huge market
for British goods like whisky, cars and services," said Truss.
"We want an agreement that pushes new frontiers in
industries of the future and helps us build a greener, more innovative and more
services-led economy that will deliver higher-paying jobs across the
country," she said.
The UK says it wants a deal that slashes barriers to
doing business and trading with India's 2 trillion pound economy and a market
of 1.4 billion consumers.
This includes removing tariffs of up to 150 per cent on
whisky and 125 per cent on British-made cars.
Indian industry welcomed the launch of the consultation,
with the Federation of Indian Chambers of Commerce and Industry (FICCI)
describing it as a sign of urgency to add momentum behind the trade talks.
"Launch of the public and business consultation for
the potential trade deal with India is very reassuring. The urgency illustrates
the importance of India as a trading and investment partner to the UK,"
said Baroness Usha Prashar,
Chair of the FICCI UK Council.
"It is encouraging to see that, as part of the
agreement, emphasis will be on new frontiers in industries of the future. This
will help the UK to build a greener, more innovative and more services-led
economy that will deliver higher-paying jobs across the country," she
said.
The UK also aims to make it easier for services firms to
operate in the Indian market, boosting the UK's status as an international
services hub.
India's growing middle-income population and highly
connected youth will be the target consumers for the type of goods and services
the UK excels in, according to the Department for International Trade (DIT).
"India is one of the world's fastest-growing
economies and we share much in common, so we're natural partners," said Ranil Jayawardena, International Trade Minister.
"A trade deal will break down barriers, making it
easier for British businesses to sell their wares in India - and secure more
investment, better jobs, higher wages, more choice and lower prices here at
home," he said.
Before negotiations start, the UK and India must complete
a pre-negotiation scoping phase - a period of engagement with businesses and
the public.
The public consultation, which runs through to August 31,
includes a questionnaire that will gather information from participants about
their experiences and priorities when doing business with India.
The DIT said it consults widely across a network of
businesses, representative bodies and trade associations, working with partners
as well as members of all the Department's Trade Advisory Groups, to seek the
broadest possible range of views to inform our negotiating position ahead of
launching trade talks.
The consultation follows the Enhanced Trade Partnership (ETP) agreed at the
virtual meeting between UK Prime Minister Boris Johnson
and Prime Minister Narendra Modi
on May 4, where they launched a "2030 Roadmap" as a framework for
UK-India relations over the next decade.
According to DIT figures, trade between the UK and India
stands at around 23 billion pounds in 2019, which both countries want to double
by 2030.
The UK government points out that the Enhanced Trade
Partnership already creates immediate opportunities for British businesses in
India across industries, such as food and drink and life sciences.
Non-tariff barriers on fruit and medical devices will be
reduced, allowing British businesses to export more of their products to India.