Following their presidents’ meeting at the G20 conference in Brazil, Britain and India announced that they would resume their stalled negotiations to reach a free-trade agreement.
After assuming office in July, Prime Minister Keir Starmer praised his meeting with Indian counterpart Narendra Modi as “very productive” and promised that a trade agreement with Delhi will accelerate the economy of the United Kingdom.
The post he made on X late Monday read, “A new trade deal will support jobs and prosperity in the UK — and represent a step forward in our mission to deliver growth and opportunity across the country.”
The two nations will resume negotiations “in the new year,” according to Starmer’s office, hours earlier, as Britain looked to establish “a new strategic partnership with India.”
In a statement summarizing the two leaders’ discussion, Downing Street stated that this would involve “deepening cooperation in areas like security, education, technology, and climate change.”
Both leaders “underlined the importance of resuming the Free Trade Agreement negotiations at an early date,” according to India’s foreign ministry.
They had “expressed confidence in the ability of the negotiating teams, to address the remaining issues to mutual satisfaction, leading to a balanced, mutually beneficial, and forward looking Free Trade Agreement,” the statement continued.
It would be a significant step for Britain as it continues to look for new markets following its exit from the European Union. The two nations have been negotiating for almost three years.
Visas and tariffs
In its negotiations with Delhi over the trade agreement, the previous Conservative government—which was overthrown by Starmer’s Labour party in July—had encountered numerous obstacles. India has lobbied for additional UK work and study visas for its residents in return for a reduction in taxes on British imports like whisky.
However, during his 20-month term, Starmer’s predecessor in Downing Street, Rishi Sunak, adopted a more stringent immigration policy in response to criticism of record migration levels following the Covid outbreak.
In late 2023, his government announced a variety of policies designed to reduce the numbers.
Starmer has made boosting the UK’s sluggish economic development a top priority, but his administration is also facing pressure on the divisive topic.
Britain is scheduled to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) next month and has already negotiated a number of post-Brexit trade agreements, notably with Australia, New Zealand, and Singapore.
However, a much desired trade agreement with the United States is still elusive, and an earlier attempt to reach an agreement with Canada failed.
