RISHI SUNAK RULES OUT QUICK-FIX TRADE AGREEMENT WITH INDIA

Sun 03 September 2023:

UK Prime Minister Rishi Sunak has ruled out a quick-fix trade deal with India, making it impossible to get an agreement over the line in time for this week’s G20 summit in Delhi – and possibly even by next year’s elections, the media reported.

Multiple sources close to the negotiations have told The Guardian the UK prime minister has rejected the idea of an “early harvest” deal, which could have lowered tariffs on goods such as whisky but would not have dealt with trickier subjects such as professional services.

Many now believe a deal is impossible before both countries hold elections in 2024, although some in government still believe it could be reached later this year.

It means the prospect of a UK-India free trade agreement, long held up as one of the biggest possible opportunities for Britain after Brexit, remains distant.

Negotiations have ground on for years without getting close to culmination. Both Johnson and his successor Liz Truss promised a deal by last Diwali, which fell in October, but nearly a year afterwards those close to the talks say large areas of disagreement remain.

Those close to the talks say agreements have been reached in some key areas, such as the need for India to cut tariffs on whisky and cars and for the UK to remove those on textiles and other goods. The Sunday Times reported earlier this month that India was prepared to reduce tariffs on scotch whisky by a third to 100% in return for tax breaks for Indian workers in the UK – though British officials say exact figures have not yet been agreed.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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