Latest news with #freetradeagreement
CNA
17 hours ago
- Business
- CNA
India and UK hail 'historic day' with signing of landmark free trade agreement
India and the UK have signed a landmark free trade agreement, in what both sides are calling a "historic day" in bilateral ties. The US$6.5-billion deal was officially inked during Indian Prime Minister Narendra Modi's two-day official visit to Britain. The pact was sealed after more than three years of negotiations, with both sides rushing to get it done in the wake of US President Donald Trump's tariff policy. British Prime Minister Keir Starmer has hailed the deal as a powerful message showing that the UK is open for business. It also marks India's first major free trade pact outside Asia. Ishan Garg reports from New Delhi and Stuart Smith reports from London.
The Independent
18 hours ago
- Business
- The Independent
Major UK-India trade deal expected to create 2,200 British jobs
Britain and India have formally signed a free trade agreement at Chequers, the prime minister's country residence, following three years of negotiations. The deal is projected to inject £6bn into the British economy and create 2,200 jobs across the country. It will significantly reduce tariffs on British goods, including halving duties on whisky and lowering them for cars and cosmetics. UK Prime Minister Sir Keir Starmer and Indian Prime Minister Narendra Modi hailed the agreement as a 'historic day' and a 'new chapter' in their nations' shared history. This marks Britain's largest trade deal since leaving the European Union and India's biggest strategic partnership with an advanced economy.
Arab News
19 hours ago
- Business
- Arab News
India, UK sign multibillion-dollar free trade deal
Indian Prime Minister Narendra Modi signed on Thursday a long-awaited free trade agreement with the UK, which will see tariffs cut on goods and increase market access for both countries. Modi arrived in London on Wednesday evening to meet his British counterpart Keir Starmer and witness the official signing of the deal by India's Commerce Minister Piyush Goyal and UK Business Secretary Jonathan Reynolds in the Great Hall of Chequers in Aylesbury. 'This agreement is not merely an economic partnership, but a plan for shared prosperity. On one hand, Indian textiles, footwear, gems and jewelry, seafood and engineering goods will get better market access in the UK. New opportunities will be created in the UK market for India's agriculture produce and processed food industry,' Modi said during a joint press conference with Starmer. 'For India's youth, farmers, fishermen, and the MSME sector, this agreement will prove especially beneficial. On the other hand, for the people and industry of India, products made in the UK, such as medical devices and aerospace parts, will become available at accessible and affordable prices.' A deal-in-principle was announced by Modi and Starmer in late May. Launched in January 2022, the FTA negotiations between India and the UK were set to conclude the same year, but despite more than a dozen formal rounds, talks have stalled over issues such as tariffs, rules of origin and mobility for services professionals. Under the new pact, about 99 percent of Indian goods will get duty-free access to the UK market. It will also halve import duties on UK-produced whiskey and gin from 150 percent, followed by a further decrease to 40 percent in a decade. Tariffs on automobiles will be reduced from 100 percent to 10 percent. The services part of the deal eases the movement of professionals — from independent practitioners such as yoga instructors, musicians and chefs, to business visitors, investors, contractual service providers and intra-corporate transferees. It also extends work and residence rights to their partners and dependent children While the pact's opponents cited concerns that it could undercut British workers, Starmer said after its signing that it 'will bring huge benefits to both of our countries, boosting wages, raising living standards and putting more money in the pockets of working people' and that it 'is good for jobs, it is good for business, putting tariffs and making trade cheaper, quicker and easier.' Current bilateral India-UK trade stands at about $54 billion, according to UK Department for Business and Trade data, with UK exports to India estimated at $21.7 billion and imports at $32.4 billion. Anupam Manur, professor of economics at the Takshashila Institution, told Arab News that the FTA is expected to increase it by more than 60 percent in the next decade. 'The free trade deal with the UK is extremely significant for India, which would result in a $34 billion boost in bilateral trade,' he said. 'From India's point of view, it stands to gain on both counts; greater choice of products at lower prices due to lower import rates, and free market access to a large, advanced economy.' India has free trade agreements with more than 10 countries, including Comprehensive Economic Partnership Agreements with South Korea, Japan and the UAE. It is also in talks with the EU to conclude an FTA by the end of 2025, and with Australia, with an interim deal signed in 2022 and a full one under negotiation. At the same time, the US is threatening tariffs on India; it wants broader access to several key sectors, including agriculture, automobiles, steel and aluminium — a concession New Delhi resists. Without a deal, Indian exports could face a 26-27 percent 'reciprocal' tariff imposed by President Donald Trump's administration, starting Aug. 1. 'The trade deal with the UK eases the pressure on the Indian side to sign a hastily negotiated deal with the US ... This also acts as a template for how a good trade deal is done without looming deadlines and threats,' Manur said. 'A trade deal with the UK, Australia and the EU will signal to the US administration that India is not desperate for a deal, but will instead negotiate on its own terms.'
Free Malaysia Today
19 hours ago
- Automotive
- Free Malaysia Today
Britain and India sign free trade pact during Modi's visit
Prime ministers Keir Starmer and Narendra Modi also agreed a partnership covering areas such as defence and climate. (AP pic) LONDON : Britain and India signed a free trade agreement today during a visit by Indian Prime Minister Narendra Modi, sealing a deal to cut tariffs on goods from textiles to whisky and cars and allow more market access for businesses. The two countries concluded talks on the trade pact in May after three years of stop-start negotiations, with both sides hastening efforts to clinch a deal in the shadow of tariff turmoil unleashed by US President Donald Trump. The agreement between the world's fifth and sixth largest economies aims to increase bilateral trade by a further £25.5 billion by 2040. It is Britain's biggest trade deal since it left the European Union in 2020, although its impact will be a fraction of the effect of leaving the orbit of its closest trading partner. For India, it represents its biggest strategic partnership with an advanced economy, and one which could provide a template for a long mooted deal with the EU as well as talks with other regions. It will take effect after a ratification process, likely within a year. British Prime Minister Keir Starmer said the deal would bring 'huge benefits' for both countries, making trade cheaper, quicker and easier. 'We've entered a new global era, and that is one that requires us to step up, not to stand aside… by building deeper partnerships and alliances,' Starmer said. Modi said the visit would 'go a long way in advancing the economic partnership between our nations'. They also agreed a partnership covering areas such as defence and climate, and said they would strengthen co-operation on tackling crime. Whisky, cars Under the trade agreement, tariffs on Scotch whisky will drop to 75% from 150% immediately, and then slide to 40% over the next decade, according to the British government. On cars, India will cut duties to 10% from over 100% under a quota system that will be gradually liberalised. In return, Indian manufacturers will gain access to the UK market for electric and hybrid vehicles, also under a quota system. The ministry has said 99% of Indian exports to Britain would benefit from zero duties under the deal, including textiles, while Britain will see reductions on 90% of its tariff lines, with the average tariff UK firms face dropping to 3% from 15%. While it is Britain's biggest deal since Brexit, the projected boost to British economic output, of £4.8 billion a year by 2040, is small compared to the country's gross domestic product of £2.6 trillion in 2024. The office for budget responsibility (OBR) has forecast that UK exports and imports will be about 15% lower in the long run compared with if Britain had stayed in the EU. In its first year in power, Britain's Labour government has launched a reset of ties with the EU in order to smooth trade friction, while also clinching some tariff relief from the US and the India trade deal. 'In an era of rising protectionism, today's announcement sends a powerful signal that the UK is open for business,' said Rain Newton-Smith, the chief executive of the Confederation of British Industry. The India deal will also facilitate easier access for temporary business visitors, though visas are not covered. Britain and India also agreed to ensure workers no longer have to make social security contributions in both India and Britain during temporary postings in the other country. Under the trade deal, British firms will be able to access India's procurement market for projects in sectors such as clean energy, and it also covers services sectors such as insurance. India didn't succeed in its efforts to get an exemption from Britain's carbon border adjustment mechanism (CBAM) – which could levy higher taxes on polluters from 2027 – as part of the deal. Meanwhile talks over a separate bilateral investment treaty are continuing.
The Guardian
19 hours ago
- Business
- The Guardian
Starmer and Modi hail ‘historic day' as UK-India trade deal is signed
Keir Starmer and Narendra Modi have hailed a 'historic day' as they signed a free trade agreement between the UK and India. The two leaders said the trade deal, which is projected to boost the UK economy by £4.8bn a year and bring in £6bn of investment by British and Indian businesses, marked a 'step change' in relations between their countries. Modi and Starmer addressed cameras at Chequers, the prime minister's country house near Aylesbury in Buckinghamshire, after signing the deal, which was finalised in May following nearly three and a half years of negotiations. Modi, speaking via a translator, described the UK and India as 'natural partners'. The agreement will see average tariffs on UK goods cut from 15% to 3%, with whisky tariffs halved initially and reduced further over the next few years. It will now be ratified by the British and Indian parliaments, a process which will take several months. Critics have argued that the deal does not offer enough for the UK's financial and legal services industries and have raised questions over India's human rights and environmental record. The London Mining Network said in a statement that the deal 'lacks robust climate safeguards', particularly around coal extraction in India. Negotiations continue over a bilateral investment treaty, which would benefit the City of London, but UK ministers and officials are understood to believe it is unlikely that one would be agreed. The two governments also continue to discuss the UK's plans for a carbon border tax, which India strongly opposes. Modi is in the UK for meetings with Starmer and King Charles, and is expected to attend a business reception on Thursday evening. The prime minister has been urged to raise the case of Jagtar Singh Johal, a Sikh activist from Dumbarton who has been detained in India for eight years. Sign up to Headlines UK Get the day's headlines and highlights emailed direct to you every morning after newsletter promotion Johal was arrested in connection with terror-related offences while in India for his wedding in 2017, and has been held since despite having been cleared of one of the nine cases against him this year. He says he was tortured in the early days of his detention and forced to make a confession. Ian Murray, the Scotland secretary, said the case was 'right at the top of the agenda'. He told BBC Radio Scotland on Thursday: 'The government are doing all we possibly can to get this resolved. There was a recent meeting, just at the start of June, between the foreign secretary and his counterpart in India.' Johal's brother, Gurpreet Singh Johal, said before Modi's visit that he was 'putting my faith in the prime minister to get this done and bring Jagtar home. He was rightly critical of the previous government's failure, and he recognised that Jagtar is arbitrarily detained … I've grown very tired of fine words and weak excuses for a lack of action, while my brother grows old in prison.' Andrew Griffith, the shadow business secretary, said the free trade agreement with India had only been made possible 'because of Brexit delivered by the Conservatives'. Kemi Badenoch, the Tory leader, was critical of the deal when it was announced in May. The Confederation of British Industry said the signing 'sends a powerful signal that the UK is open for business and remains resolute in its commitment to free and fair trade'.
