According to the British trade minister, India-UK free trade agreements (FTA) are expected to be signed this year. However, it will not include any increase in visa free movement for Indians.
Kemi Badenoch was in New Delhi last month for the sixth round FTA talks. She was there to kick-off negotiations with Commerce and Industry Minister PiyushGoyal.
The UK Secretary of State of Trade, in an interview with The Times recently, also denied any similarities between the FTA that the UK had with Australia – one the first post-Brexit trade agreements – and the one with India.
“We left the EU (European Union), because we don’t believe free movement is possible, and we didn’t believe it was working.” Badenoch stated that this is not a deal to negotiate free movement with India. He also made reference to additional visa offers.
Although the minister expressed willingness to make concessions in areas like business mobility, he ruled out Indians receiving the same deal as Australia. This allows Indians under 35 to work and live in the UK for three year.
This month saw the official launch of the reciprocal UK-India Young Professionals Scheme. It offers 3,000 graduates aged 18-30 years old visas that allow them to work and live in both countries for up to two year.
We must ensure that every trade agreement we sign is specific to each country. Badenoch stated that the mobility offer I can make to Australia will not be the same as the one I can make to India. India has many times the population.
She explained to ‘The Times” that “what people in the UK want to do when traveling to Australia is likely slightly different than what they do when travelling to India and vice versa.”
Badenoch criticized the Tory government’s previous approach to FTA negotiations that was deadline-bound and called it “unhelpful”. He reiterated the Rishi Sunak government’s more flexible approach moving forward.
“The mantra of ‘deal by Diwali” is one of my most important changes since I became Trade Secretary. It’s not about the day, it’s about how you do the deal. She said that a set day for everything to be done isn’t helpful in negotiations because the other side can slow down the clock.
Johnson had previously set a Diwali 2022 deadline to the FTA during his April visit to India as prime minister. However, due to major political upheavals within the UK, this deadline was pushed aside and most ministers have resisted setting a new timeframe.
“I think we can make a deal in the coming year. I don’t know the date. However, if the negotiations don’t end in your favor, you can move on to the next phase. Badenoch stated, “I’m keen to sign a contract this year.”
Official UK government data shows that India-UK bilateral trade is currently at GBP 29.6 million a year. At the beginning of last year, both sides officially launched FTA negotiations. Sunak committed to moving “at pace” towards an FTA which does not “sacrifice speed for quality” after the October 2022 Diwali deadline was missed.