The United Kingdom has officially begun the process of taking to the public its high stakes proposed enhanced trade deal with India.
"We’re firing the starting gun on a free trade deal with India – the world’s largest democracy, fifth biggest economy, a nation of 1.4 billion people and a huge market for British goods like whisky, cars and services," UK's International Trade Secretary Liz Truss said, as she kicked off preparations for a trade deal with India. The Trade Secretary is analogous to the Commerce Minister in other nations.
Expected to be politically significant for Prime Minister Boris Johnson, London hopes to convince British citizens that it will end in the contentious high import duties placed on key British goods when sold in India.
"The UK wants a deal that slashes barriers to doing business and trading with India’s £2 trillion economy and market of 1.4 billion consumers. This includes removing tariffs of up to 150 percent on whisky and 125 percent on British-made cars," an official statement said.
"Wide input from consumers and businesses across all sectors will help the UK craft a deal that includes closer cooperation in future-focused industries such as science, technology and services, creating high-value jobs across the country," it added.
At a key bilateral digital summit earlier this month, both nations decided to wrap up trade talks by 2021-end. In a bid to galvanise business ties and investment flows, both nations also launched the Enhanced Trade Partnership, of which the trade pact is a part.
The UK also said that it aims to make it easier for services firms to operate in the Indian market, boosting the UK’s status as an international services hub. "India’s growing middle-income population and highly connected youth will be the target consumers for the type of goods and services the UK excels in," it said.
If completed, the deal will be just the second-independently negotiated trade deal for Britain in the post-Brexit era, after it signed a pact with Japan in October, 2020. The public consultation, which runs to August 31, includes a questionnaire that will gather information from participants about their experiences and priorities when doing business with India.
It has also asked the UK to instill measures to boost more outward Foreign Direct Investment flows and dismantle practices limiting drug manufacturing by Indian firms based in Britain, according to sources.
Formal negotiations are expected to begin later this year. Before negotiations start, the UK and India must complete a pre-negotiation scoping phase – a period of engagement with businesses and the public, the UK government said.
Exports to the UK in 2020-21 (April-February) stood at upwards of $ 6.9 billion, down from $8.7 billion in 2019-20. However, over the same period, imports have seen an equally precipitous fall as inbound trade shrank to $4.2 billion, down from $6.7 billion.
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