UK and India Agree on Landmark Free Trade Deal
In a significant development, the UK and India have agreed on a landmark free trade deal that is expected to boost trade between the two nations by £25.5bn a year by 2040. The deal, which took three years to negotiate, will make it easier for UK firms to export goods such as whisky, cars, and other products to India, while also cutting taxes on India’s clothing and footwear exports to the UK.
According to the UK government, trade between the two countries totalled £42.6bn last year. The government has said that the deal will lead to increased trade and economic cooperation between the two nations, benefiting businesses and consumers alike. As reported by the BBC, the UK government said lowering tariffs on the likes of clothing, jewellery, and frozen prawns "could" lead to cheaper prices and more choice for consumers.
The Scotch Whisky Association (SWA) is set to be a major beneficiary of the deal, with Indian tariffs on Scotch whisky set to fall from 150% to 75% and expected to be tapered down to 40% over the next decade. The SWA has said that this could increase Scotch exports to India by £1bn over the next five years, creating 1,200 jobs across the UK. Jean-Etienne Gourgues, chair of the SWA and chief executive of Chivas Brothers, described the deal as a "gamechanger" for the industry.
"We will have suddenly 10 million consumers who cannot today afford our product, which will be in a position to afford our product so that’s a big change for us," he told the BBC. He added that the deal would provide "a lot of safety and long term safety" for the business. "We’re going to increase the number of jobs because everything is produced in Scotland, so the more we produce the more people we need so it will have a straight impact directly for us but also indirectly with all the companies we’re working [with]," he said.
The deal is also expected to benefit other UK industries, including the automotive and textiles sectors. The UK government has said that the agreement will help to promote economic growth and job creation in the UK, while also strengthening trade ties with one of the world’s fastest-growing economies. As the BBC reported, the deal is a significant achievement for the UK government, which has been keen to establish new trade relationships since leaving the European Union.
The implications of the deal are far-reaching, with many experts hailing it as a major breakthrough for UK trade policy. According to the BBC’s reporting, the agreement is a significant step forward for the UK’s post-Brexit trade agenda, demonstrating the country’s ability to strike new trade deals with countries around the world. As the UK and India move forward with implementing the deal, businesses and consumers on both sides are set to benefit from increased trade and economic cooperation.
This news was first reported by the BBC: UK-India trade deal: Cheaper clothes and whisky on the way
