Early conclusion of India-UK free trade deal now “down to political will,” British envoy Ellis

23 January, 2023 | Vaishali Sharma

india-uk World

British High Commissioner underlined the benefits of the India-UK free trade deal, which he says is underpinned by the mutual trust between the two countries.

Even as India and the United Kingdom recently concluded round six of bilateral free trade agreement (FTA) negotiations, Britain’s High Commissioner Alex Ellis stated that after covering a lot of ground, the question now is not just technical details but political will on both sides to push for an early conclusion of the deal.

In the latest episode of ANI ‘Podcast with Smita Prakash’, the British High Commissioner underlined the benefits of the India-UK free trade deal, which he says is underpinned by the mutual trust between the two countries. “We are getting towards the end of this negotiation I would say. It’s a long ascent up to any mountain, then you go through the valley for a long time, then you go up to the base camp, and then you do a short sharp ascent. That’s what we are trying to do. Both countries want to do the deal and that’s a big change,” he said. in response to a question on the FTA.

Earlier the FTA, which aims to double bilateral trade by the year 2030 was expected to conclude by Diwali last year but the deal did not go through after it ran into problems. Now a seventh round of negotiations for the FTA is expected to resume in the UK in the next few weeks. Britain’s new Prime Minister Rishi Sunak, the country’s first leader of Indian descent had earlier conveyed his hope of finalising the trade agreement during a call with his Indian counterpart Narendra Modi.

The UK has signed trade deals agreements with 71 counties since its exit from the European Union in the year 2020.

“It’s not a coincidence that we have done with Australia, again close partners with India. Both countries are also talking to Canada as well. We are going to start some negotiations with some Gulf countries as well,” the UK envoy to India said.

The British High Commissioner explained that the trade negotiations between India and the UK will centre around how each side is willing to lower the traffic on some goods.

“How much openness can there be on the services on the Indian side? Pretty closed market. Can be opened a little bit more. Because it will be an opportunity for both India and UK,” the British envoy said.
Ellis said that India will look for more opportunities for temporary mobility of workers and other issues around the investigation protection. “But we can see what those issues are. The question is down to not just technical details but political will. A lot of work is being done. We have actually closed half the chapters and we will close some more soon,” the UK envoy said.

In response to a query on student visas, the High Commissioner stated that the UK-India FTA will address the problem of temporary worker mobility. He pointed out that India already receives almost 40% of all skilled worker visas issued by the UK.

“Students visas are a separate issue outside of the Free Trade Agreement,” he added.
Reflecting on the FTA between the two countries, Ellis asked “We have to step back and think that why do we want to do this deal?”

“There are clear economic benefits to the deal. Our work shows that we published at the beginning of last year as we launched the negotiations, some figures about how much our GDP would benefit and that’s also true for India as well,” the UK High Commissioner to India said.

Along with economic benefits, he claims the FTA would improve the flow of talent and ideas between the two nations.

The UK envoy also discussed the strategic benefits of working to maintain a free and open Indo-Pacific region, noting that India is one of the region’s vibrant, fast-growing economies.
The UK government thinks that shifting its trade focus to the Indo-Pacific will help diversify its trade, strengthen supply networks, and make the UK less subject to global political and economic shocks.

 An FTA with India, says the UK will also cement its position as a leader among a network of countries committed to free trade, whilst strengthening like-minded democracies who are committed to ensuring mutual prosperity.

“Both (India and UK) want to increase trust between the two countries. India sees a big opportunity in becoming an alternative supplier to China in some areas and high-end manufacturing for example,” he said. A case in point the envoy pointed is the trust between the two countries including the joint UK-India joint production of the Covishield vaccine.

AstraZeneca and Oxford University collaborated to create Covishield, which is produced by the Serum Institute of India (SII).