Britain's Prime Minister Keir Starmer and Chancellor of the Exchequer Rachel Reeves, host an investment roundtable discussion at 10 Downing Street in London, Britain, Thursday, Nov. 21, 2024.
Reuters
London: The Free Trade Agreement negotiations with India -- expected to significantly boost the estimated GBP 42-billion a year bilateral trade partnership -- will be relaunched early in the new year, Prime Minister Keir Starmer has informed the UK Parliament here.
It came during his statement to update the House of Commons on Thursday about his G20 Summit visit to Brazil, where he said he had a “good discussion” with Prime Minister Narendra Modi among other world leaders.
The meeting earlier this week had led to both countries agreeing to resume the election-stalled Free Trade Agreement (FTA) talks.
“I had a good discussion with Prime Minister Modi about deepening our bilateral ties,” Starmer told the members of Parliament.
“We agreed to raise the ambition of our UK-India comprehensive strategic partnership, which covers security, defence, technology, climate, health and education, building on the unique bonds and cultural ties between our two countries.
“Crucially, this work will start with trade and investment and I am pleased to say that we agreed to relaunch Free Trade Agreement negotiations early in the new year,” he said.
The talks had been paused in the 14th round as the general election cycles kicked in for both nations, with FTA negotiations that began under a Conservative Party government now being picked up by a Labour-led administration in charge in Britain.
“Boosting economic growth is key to improving living standards for working people. A new trade deal with India will support jobs and prosperity in the UK – and represent a step forward in our mission to deliver growth and opportunity across our country,” Starmer said in Rio de Janeiro, soon after his first in-person meeting with Modi since taking charge at 10 Downing Street.
According to the UK India Business Council (UKIBC), which has engaged with officials across departments in both governments during the 13 rounds of negotiations, a substantial number of chapters have already been discussed for the FTA.
Meanwhile, the UK’s Department for Business and Trade (DBT) is set to unveil the government’s new Trade Strategy aligned with its Industrial Strategy to help inform all future trade negotiations and achieve long-term sustainable, inclusive and resilient growth through trade.
“India is the fifth largest economy in the world and a vital trading partner for the UK. We believe there is a good deal to be done here that works for both nations,” said Business and Trade Secretary Jonathan Reynolds.
India and the UK have been negotiating the FTA since January 2022 and the Commerce and Industry Ministry in New Delhi has said that both sides would resume the discussions from the “progress achieved previously and seek to bridge the gaps for expeditiously closing the trade deal”.