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Home»News»Keir Starmer to restart UK-India talks after previous negotiations stalled | Trade policy
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Keir Starmer to restart UK-India talks after previous negotiations stalled | Trade policy

EditorBy EditorNovember 19, 2024No Comments3 Mins Read
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Keir Starmer is to restart the aborted UK-India trade talks in the new year after an agreement stalled amid disagreements over whisky tariffs and migration.

No progress has been made on the deal since early this year after the last round of talks concluded. As prime minister, Boris Johnson promised a swift deal, but Rishi Sunak was said to be deeply uneasy with some of the provisions that had been negotiated by his predecessor. Talks were put on hold in March while both countries prepared for general elections.

The deal was originally believed to be based on broad agreement for lower tariffs on whisky and cars from the UK and tariff reductions on Indian textiles, as well as more visas for tech workers and students.

But there were significant concerns about the deal for UK services, which make up 80% of the economy, to give them access to the Indian market. India has a population of 1.4 billion and its economy is predicted to become the world’s third largest by 2050.

Starmer met the Indian prime minister, Narendra Modi, at the G20 summit in Brazil where he spoke of his hopes of finally clinching a trade deal. “Boosting economic growth is key to improving living standards for working people,” he said.

“A new trade deal with India will support jobs and prosperity in the UK – and represent a step forward in our mission to deliver growth and opportunity across our country.”

At their bilateral, Starmer said he wanted to take Britain’s relationship with India to “another level” and said he was “very ambitious” in terms of furthering ties “on trade, on energy and on so many issues, including security.”

Modi congratulated Starmer on winning “such a large mandate” at the July election.

Jonathan Reynolds, the business secretary, said: “India is the fifth largest economy in the world and a vital trading partner for the UK. We believe there is a good deal to be done here that works for both nations.

“Whether it’s lowering Indian tariffs to help British firms export to this dynamic market or boosting investment which already supports over 600,000 jobs across both countries, striking a deal is important to deliver this government’s core mission of driving economic growth.”

In signs that Starmer is looking to reopen some aspects of the deal already negotiated, No 10 said it hoped the talks would be as “ambitious as possible” and that the UK hoped to negotiate a wider strategic partnership, including areas such as security, education, technology and climate breakdown.

“It’s well documented that India’s middle class is 60 million and rising and set to reach a quarter of a billion by 2050,” a spokesperson said. “This is a huge market for UK, for UK businesses, and that’s why the PM is so keen following his bilateral with Prime Minister Modi to announce the relaunch of these important trade talks.”

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