U.K. and India secure significant trade agreement amidst Trump's tariff shadows.
Shake-Up in Global Trade: India-UK Free Trade Agreement Signed
In an exciting turn of events, India and the United Kingdom have sealed a groundbreaking free trade pact on Tuesday. This remarkable deal, marking London's most crucial post-Brexit agreement, was finalized in the wake of US President Donald Trump's tariff hikes.
The agreement between the fifth and sixth-largest economies is expected to substantially boost bilateral trade by an additional £25.5 billion (US$34 billion) by 2040, thanks to liberal market access and relaxed trade barriers. According to Indian Prime Minister Narendra Modi, this agreement will further enhance their comprehensive strategic partnership and stimulate trade, investment, growth, job creation, and innovation.
The pact lowers tariffs on a wide array of goods, including whisky, advanced manufacturing components, food products like lamb, salmon, chocolates, and biscuits, as well as vehicles through agreed quotas for auto imports.
In their pursuit of bilateral agreements with the United States to diminish some of the Trump-imposed tariffs, both countries have found themselves confronted with the upheaval of the global trade system. As a result, the critical need to seal a UK-India trade deal has become more pressing than ever before.
British Prime Minister Keir Starmer commented, "With this novel era for trade and the economy, we are now compelled to accelerate and amplify our efforts to bolster the UK's economy."
The new agreement paves the way for the mobility of Indian professionals to the UK for employment prospects. Although it does not alter the UK's current points-based immigration system, the FTA provides a valuable opportunity for Indians seeking employment in the UK.
A Double Contribution Convention Agreement is also part of the deal, which exempts Indian workers in the UK from paying into their social security system for a period of three years.
This historic alliance is anticipated to invigorate bilateral trade, offering British businesses access to India's vast and expanding market and gives Indian consumers access to high-quality products at competitive prices. Job creation, innovation, and enhanced economic growth are expected to be the fruits of this agreement.
In summary, the India-UK trade pact marks a significant milestone in the quest for strengthening economic ties, opening up trade and investment opportunities, and fostering job creation and innovation in both nations. With this deal in place, the economic ties between India and the UK are poised for a profound transformation.
- The India-UK free trade agreement, signed in London, aims to increase bilateral trade by an additional £25.5 billion (US$34 billion) by 2040.
- The pact lowers tariffs on a wide range of goods, including advanced manufacturing components, food products, cars, as well as whisky.
- British Prime Minister Keir Starmer expressed the need to boost the UK's economy, stating, "With this novel era for trade and the economy, we are now compelled to accelerate and amplify our efforts."
- The agreement also includes a Double Contribution Convention Agreement, which exempts Indian workers in the UK from paying social security for three years.
- The deal is expected to offer British businesses access to India's expanding market and provide Indian consumers with high-quality products at competitive prices.
- This India-UK trade pact is a significant step towards strengthening economic ties, opening up trade and investment opportunities, and fostering job creation and innovation in both nations.
