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UK Pursues New Free Trade Agreement with India

Mormugao Harbour- Image courtesy Alexander Savin, WikiCommons
Mormugao Harbour - Image courtesy Alexander Savin / WikiCommons

Published Sep 16, 2021 9:33 PM by The Maritime Executive

The UK will meet with India in November in an effort to establish a free trade agreement to build new trade relationships following Britain's departure from the European Union.

Since its departure from the EU in January 2020, the UK is seeking to rebuild trading agreements as its previous EU trade agreements ended at the beginning of this year.

India’s Commerce & Industry Minister, Sri Piyush Goyal, said the interim trade pact would involve early tariff or market access concessions on key high priority products and services.

“India is committed to the early conclusion of an ambitious, comprehensive and mutually beneficial India-UK free trade agreement,” said Goyal after holding discussions with Britain’s Secretary of State Elizabeth Truss.

Data from the UK Department of Trade shows that India is the UK’s 15th largest trading partner with a value at $25.3 billion in 2020, accounting for 1.6 percent of total UK international trade.

In 2019 the foreign direct investment (FDI) by the UK to India was $21 billion, which accounted for one percent of the total UK outward FDI stock. India accounted for $13 billion in investment in the UK.

The countries hope to conclude the FTA by March 2020.

Top Image: Mormugao Harbour (Alexander Savin / Public domain)