UK Labour Government Revives Trade Negotiations, Prioritising India FTA

New Delhi, Jul 30 (KNN) The newly elected Labour government in the United Kingdom has announced plans to reinvigorate trade negotiations, with a particular focus on securing a Free Trade Agreement (FTA) with India.

Business and Trade Secretary Jonathan Reynolds outlined the government's approach to international trade deals, emphasising economic growth as a key objective.

The Department for Business and Trade (DBT) intends to publish a trade strategy aligned with the government's industrial strategy, aimed at enhancing economic security and supporting net zero ambitions.

Reynolds stated, "Boosting trade abroad is essential to deliver a strong economy at home," highlighting the government's commitment to pressing forward with trade talks.

India-UK trade negotiations, which began in January 2022 under the previous Conservative government, have completed 13 rounds of discussions.

The bilateral partnership is currently valued at EUR 38.1 billion annually. The Labour government plans to continue these negotiations, recognising India's projected growth to become the world's third-largest economy by 2027.

In addition to India, the DBT aims to secure trade deals with the Gulf Cooperation Council (GCC), Israel, South Korea, Switzerland, and Turkey. The first round of trade talks under the new government is expected to commence in the autumn.

The DBT emphasised that Free Trade Agreements are not the sole focus of their trade programme. The proposed trade strategy also aims to reset the UK's relationship with the European Union and support small businesses in exporting by removing unnecessary trade barriers.

According to the DBT, the UK is the world's fourth-largest exporter, with exports totalling EUR 855 billion in 2022. The government remains committed to leveraging all available resources to support British businesses in global markets.

(KNN Bureau)