Britain already has FTAs with those four countries which were rolled over when it left the European Union in 2020, but had previously launched talks aimed at updating the agreements…reports Asian Lite News
Britain’s new government said on Monday it was restarting talks aimed at securing free trade agreements (FTAs) with India and countries in the Gulf Cooperation Council.
Prime Minister Keir Starmer, whose Labour Party returned to government after 14 years in opposition following a landslide victory at a July 4 election, has made economic growth the central mission of his government.
Trade talks were paused during the election.
“Restarting talks is the first step towards agreeing the high-quality trade deals the UK needs to give businesses access to international markets, boost jobs and deliver that growth,” the government said in a statement.
The trade department said the first round of negotiations under the new government were expected to take place in the autumn and would include fresh talks with Israel, South Korea, Switzerland and Turkey.
Britain already has FTAs with those four countries which were rolled over when it left the European Union in 2020, but had previously launched talks aimed at updating the agreements.
The UK and India have had 14 rounds of negotiations since the Boris Johnson-led Conservative government launched trade talks with New Delhi in 2022. The total value of trade in goods and services was £39 billion ($50 billion) in the four quarters ending Q4 2023 as per U.K. government data.
“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,” Business and Trade Secretary Jonathan Reynolds said on Monday.
A trade agreement with India would give the U.K. access to the Indian middle class, projected to grow to over a quarter of a billion consumers by 2050, a U.K. government statement said.
“I am delighted that the new government has moved so quickly to restart trade negotiations with India,” Chairman of Tata Sons N. Chandrasekaran said, according to a statement released by the U.K. Department for Business and Trade.
“As one of the largest international investors in the U.K., the Tata Group supports any action that strengthens the British economy,” he added. In July 2023, Tata Sons had announced that it would invest some £4 billion in an electric vehicle battery factory in the UK.
The U.K. and India are also negotiating a bilateral investment treaty. The U.K. wants greater access to Indian markets as far as financial, legal and other services are concerned. India wants greater ease of movement for skilled professionals to deliver services in the U.K. (under Mode 4 General Agreement on Trade in Services). Both countries want greater access for goods in several categories.
The U.K.’s Foreign Secretary, David Lammy was in New Delhi last week to begin a “reset” of a somewhat troubled relationship the Labour Party has had with India, owing in part to its former positions on Kashmir. India and the U.K. launched a security technology partnership and agreed to cooperate closely on climate change, when the U.K.’s Foreign Secretary was in New Delhi.
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