India, UK clinch landmark trade deal in shadow of Trump’s tariffs
The agreement between the world’s fifth and sixth-largest economies – London’s most significant post-Brexit deal – concluded after three years of negotiations
India and the United Kingdom concluded on Tuesday a long-coveted free trade pact, in a landmark deal that represents London’s most significant post-Brexit agreement that was finalised in the shadow of US President Donald Trump’s tariff increases.
The deal, between the world’s fifth and sixth-largest economies, concluded after three years of stop-start negotiations and aims to increase bilateral trade by a further £25.5 billion (US$34 billion) by 2040 with liberal market access and eased trade restrictions.
“These landmark agreements will further deepen our comprehensive strategic partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies,” Indian Prime Minister Narendra Modi said.
The deal lowers tariffs on goods such as whisky, advanced manufacturing parts and food products such as lamb, salmon, chocolates and biscuits. It also agrees to quotas on both sides for autos imports.
Both countries are also seeking bilateral deals with the United States to remove some of Trump’s tariffs that have upended the global trade system, and the resulting turmoil sharpened focus in both London and New Delhi on the need to clinch a UK-India trade deal.
“We are now in a new era for trade and the economy. That means going further and faster to strengthen the UK’s economy,” British Prime Minister Keir Starmer said.