The UK Secretary of State for Business and Trade, Kemi Badenoch, expressed optimism regarding the possibility of finalizing a trade deal with India before the upcoming general election in the country. However, she emphasized that the UK is not keen on setting the election as a strict deadline for the agreement.
Speaking at a Global Trade conference hosted by the think tank Chatham House in London, Badenoch highlighted the challenges posed by India's protectionist economic policies compared to the UK's more liberalized approach. She underscored the importance of ensuring a trade pact that holds substantial commercial value rather than being merely a political gesture ahead of an election.
Badenoch emphasized the significant disparities between India's protectionism and the UK's liberalization, stressing the need for a mutually beneficial agreement. She referenced the successful FTAs with Australia and Japan as models where tangible benefits were realized.
Regarding the timeline for concluding negotiations with India, Badenoch acknowledged the potential for reaching an agreement before the Indian election but expressed reluctance to be constrained by deadlines. She emphasized the importance of thorough negotiations rather than rushing to meet election-related timelines.
Negotiations for a free trade agreement between India and the UK commenced in January 2022, aiming to bolster the existing £36 billion bilateral trade partnership. The ongoing discussions, now in their fourteenth round, focus on key issues such as tariff reductions on UK exports and concerns over the treatment of Indian workers in the UK.
Badenoch highlighted the necessity of striking a balance between facilitating imports from developing countries like India while upholding British standards of quality and safety. She emphasized that FTAs contribute to diversification and resilience in trade, particularly in the context of the Indo-Pacific tilt.
With both India and the UK facing upcoming general elections, there is a heightened sense of urgency to finalize a trade agreement before political campaigns take center stage. However, Badenoch emphasized the need for a comprehensive agreement that serves the long-term interests of both nations rather than rushing for short-term political gains.
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