Business and Trade Secretary of UK Mr. Jonathan
Reynolds spelt out his department’s approach to international
trade deals, which he said will put economic growth at the heart of the
negotiations to achieve high-quality pacts that give British businesses access
to international markets and boost jobs.
The Department
for Business and Trade (DBT) said it also plans to publish a
trade strategy which aligns with the government’s industrial strategy, enhances
economic security and supports net zero ambitions.
Boosting trade
abroad is essential to deliver a strong economy at home. That’s why I’ve wasted no time taking stock of progress and getting
ready to press on with trade talks with our international partners, said
Reynolds.
From the Gulf to India, our trade programme is ambitious and plays to
the UK’s strengths to give British businesses access to some of the most
exciting economies in the world. Our teams will be entering negotiating rooms
as soon as possible, laser-focused on creating new opportunities for UK firms
so they can support jobs across the country and deliver the growth we
desperately need, he said.
India and the UK began negotiating an FTA in January 2022 under the then
Conservative Party government and 13 rounds of negotiations have been completed
since then to enhance the GBP 38.1 billion a year bilateral partnership. Reynolds has now set the tone for the new
Labour government’s plans to not only sign off on a deal, but also to carry on
the process from where it was left off in the fourteenth round of discussions
amid general elections in both countries.
India, with which the UK is negotiating a Free Trade Agreement and
Bilateral Investment Treaty, is projected to be the world’s third largest
economy by 2027. A trade deal would give UK businesses better access to its
burgeoning market of middle-class consumers, projected to grow to over a
quarter of a billion consumers by 2050, notes the DBT.
The announcement follows Foreign Secretary David Lammy’s visit to India
last week to discuss economic and global security.
Chairman of Tata
Sons Natarajan Chandrasekaran said in a statement: I
am delighted that the new government has moved so quickly to restart trade
negotiations with India. As
one of the largest international investors in the UK, the Tata Group supports
any action that strengthens the British economy. And as two of the world’s
greatest trading nations with deep historical ties, India and the UK should be
close economic partners, to the benefit of the citizens and businesses of both
countries.
Besides India, the DBT wants to deliver trade deals with the Gulf Cooperation Council (GCC),
Israel, South Korea, Switzerland and Turkey. Monday’s announcement is intended
to kick-start the process of getting negotiators back into the room with
counterparts as soon as possible, with the first round of trade talks under the
new British government expected to take place during the autumn period which
begins towards the end of August.
The DBT said its trade programme aims to deliver deals that will benefit
the UK economy and boost trade with some of the most dynamic economies in the
world. Meanwhile, the department
stressed that FTAs are not the only tool to drive economic growth through
trade, with a proposed trade strategy aimed at helping reset the UK’s relationship
with the European Union (EU) to support more small businesses to export by
tearing down unnecessary barriers to trade and jobs.
According to the DBT, UK exports totalled GBP 855 billion as the world’s
fourth-largest exporter in 2022 and high-quality British goods and services
continue to be admired globally and the government is committed to using every
lever available to help British businesses sell around the world.