15 C
Lahore
Thursday, February 6, 2025

UK and India to restart halted free trade negotiations

Britain and India will resume stalled negotiations for a free trade agreement, the two nations announced after their leaders met at the G20 summit in Brazil.

Prime Minister Keir Starmer, who assumed office in July, described his meeting with Indian Prime Minister Narendra Modi as “very productive” and emphasized that a trade pact with India would stimulate UK economic growth.

“A new trade deal will support jobs and prosperity in the UK and mark a step forward in our mission to deliver growth and opportunity across the country,” Starmer posted on X late Monday. Hours earlier, Starmer’s office confirmed that the two countries would restart talks in the new year as part of Britain’s plan to forge a stronger strategic partnership with India.

This partnership will include enhanced cooperation in areas such as security, education, technology, and climate change, according to a statement from Downing Street summarizing the leaders’ meeting.

India’s foreign ministry also expressed support for resuming the Free Trade Agreement (FTA) talks promptly. Both leaders expressed confidence that the negotiating teams would resolve the remaining issues to achieve a balanced and mutually beneficial agreement.

The two countries have been negotiating the deal for nearly three years, with Britain seeking alternative markets following its exit from the European Union.

Tariffs and visas remain key issues. India has pushed for increased UK work and study visas for its citizens in exchange for lowering tariffs on British goods like whisky. However, the previous Conservative government, led by Rishi Sunak, had taken a tough stance on immigration, which led to difficulties in negotiations. Sunak’s government introduced a range of measures in late 2023 to curb immigration, sparking criticism amid record migration levels post-Covid.

Starmer has made boosting UK economic growth a priority, though his administration faces pressure over immigration.

Britain has secured several post-Brexit trade deals, including with Australia, New Zealand, and Singapore, and is set to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) next month. However, deals with the United States and Canada remain elusive.

Latest news

- Advertisement -spot_img

Related news