UK Secretary of State for Business and Trade, Kemi Badenoch, overseeing the negotiation of a trade deal with India, highlighted the intricate nature of discussions, noting the potential for a conclusion before India's general election. However, she emphasized that Britain is cautious about setting deadlines in negotiations.
Badenoch, speaking at a Global Trade conference hosted by the Chatham House, elaborated on the complexities of reaching an agreement with India, citing India's "protectionist economy" in contrast to the UK's liberalized regime as a contributing factor to the prolonged negotiations.
Asserting the importance of substantive outcomes over mere symbolic gestures, Badenoch stressed her commitment to securing a trade pact that holds commercial significance rather than serving as a political expedient ahead of elections.
Commenting on the divergent economic policies of India and the UK, Badenoch highlighted the disparity, affirming that while India maintains a protectionist stance, the UK remains highly liberalized in its approach to trade.
Addressing concerns regarding the timeline for concluding negotiations, Badenoch expressed reluctance to impose deadlines, fearing they might impede progress. While acknowledging the possibility of reaching an agreement before India's election, she underscored the importance of prioritizing substantive outcomes over arbitrary timelines.
The negotiations between India and the UK, ongoing since January 2022, aim to bolster the bilateral trade partnership, currently valued at GBP 36 billion. The latest round of talks, the fourteenth in the series, holds promise for a potential breakthrough.
Key sticking points in the negotiations include the UK's desire for India to reduce tariffs on exports such as food, automobiles, and whisky, alongside India's concerns regarding the treatment of Indian workers in the UK under business visas.
In her keynote address, Badenoch emphasized the need to strike a balance between facilitating trade with developing countries while upholding stringent quality and safety standards. She emphasized the role of free trade agreements in achieving diversification and resilience in trade, particularly amid the Indo-Pacific focus.
With both India and the UK gearing up for general elections, the urgency to finalize a trade agreement has intensified, driven by the desire to secure economic partnerships before political campaigns take precedence.
