Trump brandishes tariffs, but India and UK are back talking trade
Subscribe to enjoy similar stories. India and the UK returned to free trade negotiations on Monday after a year's gap, offering a glimmer of optimism in a world witnessing a surge in protectionism. According to commerce minister Piyush Goyal, the proposed free trade agreement (FTA) may raise India-UK trade by as much as threefold in the next 10 years, at a time when rising tariff walls threaten to put a dampener on free movement of goods and services.
Alongside the FTA, discussions are also progressing on a Bilateral Investment Treaty (BIT) and a Double Taxation Avoidance Agreement, the two sides confirmed, adding all three aim to provide a stable regulatory and investment climate. "This will be a path-breaking free trade agreement," Goyal said at a press conference with his British counterpart Jonathan Reynolds, adding it could boost merchandise trade with Britain two to three times in a decade. India's trade with the UK grew from $17.5 billion in FY22 to $20.36 billion in FY23 and $21.34 billion in FY24.
The UK is India's 11th largest trade partner, with the two sharing long-standing cultural and social links. The ability to stitch together bilateral deals is key in an era where multilateralism has suffered. The US forced Canada and Mexico to renegotiate their free trade pact during Donald Trump's first term as president, and has recently threatened stiff tariffs on both neighbours.
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