New India-UK trade agreement moves on from decades of dreams
Dramatic, though phased, reductions in tariffs plus other deals
By: John Elliott
For decades, India and the UK have eulogized about their common heritage, their shared values and common language, hoping a series of isolated initiatives based on good intentions would yield material results in terms of increased trade and investment partnership. But the dreams of future potential have never been fully realized, even though two-way trade has grown from some £3bn in the early 1990s to £43 billion last year.
The signing of a multi-billion-dollar free trade agreement during Narendra Modi’s official visit to the UK on July 23 and 24 should gradually change that after years of unrealized hopes. “Today marks a historic day in our bilateral relations,” Modi said during a signing ceremony at Chequers, the UK prime minister’s country residence. The aim is to double two-way trade to over £80 billion (US$112 billion) by 2030.
After three years of tough negotiations, there are to be wide-ranging phased tariff reductions, though the deal still has to be approved by the UK parliament, which might delay implementation till next year. There is also fresh and expanded co-operation in other areas, including visas plus defense, technological cooperation, education, climate, and security…