Britain's key opposition, the Labour party, which is widely expected to win the upcoming elections on July 4, said they will seek a new strategic partnership with India, including a free trade agreement (FTA).
Ahead of the 2024 general elections in United Kingdom (UK), the Labour party released their manifesto outlining the programme for the government for the next five years on June 13.
In this manifesto, it also said that the party will focus on deepening co-operation with India in areas like security, education, technology and climate change.
India and the UK are in talks over a FTA, which was originally slated to be signed during Diwali 2022. There are 26 chapters in the agreement, which include goods, services, investments, and intellectual property rights.
Last month, UK Prime Minister Rishi Sunak and leader of UK's ruling Conservative Party, surprised everyone by announcing snap polls in the country, triggering concerns about the fate of the trade pact with India as a result of a potential regime change sooner than anticipated.
Britain was mandated to hold general elections before January 2025.
These worries may be eased given that the opposition Labour party, widely seen as a frontrunner, mentioned the FTA with India in their manifesto
Negotiations between India and the UK for a trade agreement have been ongoing for around 28 months, after they were started in January 2022. So far, 13 rounds of talks have been conducted between the two sides, with the 14th round still underway.
The two sides continue to negotiate on a few unresolved issues, including rules of origin, London’s demand for tariff concessions on electric vehicles, and norms about services. There are 26 chapters in the agreement, which include goods, services, investments, and intellectual property rights.
India and the UK are also looking to iron out disagreements over New Delhi seeking easier mobility norms for its services industry.
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