British Prime Minister Keir Starmer has hailed the recently signed Free Trade Agreement (FTA) with India as a great success for the UK, while strongly condemning the opposition Conservative Party for being against it.
Speaking at Prime Minister's Questions (PMQs) in the House of Commons, Starmer pointed out that the Labour government had been able to complete the FTA with India last week—a success the Conservatives had not managed to do in the last eight years in office.
He had a row with Opposition Leader Kemi Badenoch over Labour's jobs and economic record, presenting the trade agreement as a major victory for Britain.
“In just the past week, we’ve sealed a historic trade deal with India and a major agreement with the United States. These deals will create and safeguard British jobs, cut tariffs, and drive economic growth,” Starmer stated. “The India deal is a fantastic deal: car tariffs are down to 10 per cent, whisky and gin tariffs are slashed in half, and £4.8 billion is being injected into our economy.”
He then attacked Badenoch, referencing her earlier statements brushing off India's accusations of inauthenticity over the Double Contribution Convention (DCC) as "fake news." The DCC is a measure seeking to avoid Indian and British temporary workers paying double social security contributions on both sides. "She even accused the Indian government of fake news last week — no surprise she failed as Trade Secretary," Starmer further stated. "The Tories are a spent force, sliding into irrelevance. They're a dead party walking."
The Conservative Party has also been against the DCC, claiming it sets up a preferential tax deal that enables Indian employees to sidestep certain contributions for three years. But Indian and British officials have made it clear that the provision is mutual, also covering UK nationals working in India, and was actually on the negotiating table under the last Tory government—when Badenoch herself headed trade negotiations.
"The previous government took eight years attempting and failing to get a deal with India. We succeeded," said Starmer. "It's rather ironic that a former Minister of Trade is now opposed to a trade deal she previously helped to design."
As per the UK's Department for Business and Trade (DBT), the deal signed on May 6 is expected to raise bilateral trade annually by £25.5 billion in the long run. Some of the best features of the deal include a significant decrease in Scotch whisky tariffs—from 150 per cent at present to 40 per cent in the long run—and increased automotive export quotas, both of which have been regarded as big wins for British industries.
The accord is currently in the process of drafting and will be tabled to Parliament for ratification before it can go into effect.
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