India

India, UK resolve to fast track negotiations on trade deal

Updated : December 16, 2020 08:35 AM IST

India and the UK on Tuesday resolved to fast track discussions on a trade deal as well as concluding a comprehensive migration and mobility partnership agreement, a move that comes in the backdrop of Britain looking at ways to offset adverse financial implications of its exit from the European Union.

During talks between External Affairs Minister S Jaishankar and visiting British Foreign Secretary Dominic Raab, the two sides discussed ways to further deepen trade and investment ties as well as to hasten post-COVID-19 economic recovery. At a joint press conference with Jaishankar, Raab exuded confidence of firming up an ’Enhanced Trade Partnership’ next year, which he said, could be a stepping stone towards a future free trade agreement.

”The UK and India have an invaluable and indispensable partnership, and we look forward to strengthening it in the years ahead. Together we can deliver an Enhanced Trade Partnership next year,” he said. In a statement, the Ministry of External Affairs said both sides recognised the importance of fast-tracking the discussions on a trade deal to tap the full potential of bilateral trade and economic relations.

”Both sides recognised the importance of fast-tracking the discussions on a trade deal as well as concluding a comprehensive migration and mobility partnership agreement that can facilitate swifter movement of students and professionals in both directions,” it said. Raab’s three-day visit to India from December 14-17 comes at a time the UK is holding complex negotiations with the European Union on reaching a post-Brexit trade deal.

In the wake of Brexit, the UK has been looking at ramping up trade cooperation with leading economies like India. There have been apprehensions that its separation from the European Union without a trade deal could severely cripple its financial markets and may have long-term implications for its economy. A statement by the UK government said the ’Enhanced Trade Partnership’ will unlock economic benefit for both the countries.

”Ahead of a future free trade agreement, it will boost bilateral trade and investment, which already stands at almost 24 billion pound and grew by 11 percent in the last financial year. UK-India investment supports over half a million jobs in each other’s economies,” it said. It said as a major economic and diplomatic power in the Indo-Pacific, closer UK-India economic, security and scientific ties will boost growth and create jobs for Britons and Indians.

”An immediate win has been the UK global tariff schedule, which could reduce tariffs on Indian exports by up to 40 million pound per year from January 1, 2021,” the statement said. The MEA said Jaishankar and Raab also held discussions on a number of regional and global issues of mutual interest and reiterated their shared commitment to a multi-polar world and faith in multilateralism.

”They explored ways to strengthen cooperation in the Indo-Pacific, on countering terrorism and radical extremism and addressing emerging challenges in the cyber, maritime and space domains,” it said.

India, UK resolve to fast track negotiations on trade deal

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