Trade talks between India and the UK are poised for a crucial restart with the impending visit of UK Foreign Secretary David Lammy. This visit marks the first major diplomatic engagement under Britain’s newly elected Labour government, highlighting a renewed focus on enhancing bilateral trade relations.
Negotiations for the India-UK free trade agreement (FTA) initially began in January 2022 during the Conservative administration, targeting a major boost to the GBP 38.1 billion annual trading partnership. The fourteenth round of talks faced an impasse due to elections in both nations.
A report from The Daily Telegraph reveals that Indian officials seek clarity on Labour’s approach—whether to continue from the last discussion point or initiate new terms. “India is keen to resume talks on a positive note, but the date needs clarity,” stated a source. “The trade deal was at the final stage in the previous government, and we want to see whether the Labour government wants to start from where we left it in March before the elections or start afresh from scratch. Our stance on visas for professionals remains unchanged. We are expecting a positive outcome under the Labour government.”
David Lammy, at the India Global Forum (IGF) in London, emphasized Labour’s readiness to finalize the trade deal swiftly, criticizing former Prime Minister Boris Johnson’s missed Diwali 2022 deadline. “Labour is ready to go. Let’s finally get our free trade deal done and move on,” he remarked.
Indian High Commissioner Vikram Doraiswami clarified that visas are not the primary focus in the FTA discussions. “The goal is to enhance the ambition in goods and services offered to the UK. Visas are not our primary objective. We are not seeking the FTA as a means for migration to the UK,” he explained, aiming for reasonable provisions under the General Agreement on Trade in Services (GATS) to facilitate intercompany transfers and similar movements.
The Labour Party’s manifesto, led by Prime Minister Keir Starmer, promises a “new strategic partnership with India, including a free trade agreement, as well as deepening cooperation in areas like security, education, technology and climate change.” Lammy’s visit to India, before attending the 57th ASEAN Foreign Ministers’ Meeting in Vientiane, Lao People’s Democratic Republic, sets the stage for fulfilling this strategic partnership.
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