UK PM Keir Starmer Relaunches FTA Talks After Meeting PM Narendra Modi

UK PM Keir Starmer Relaunches FTA Talks: Keir Starmer, the Prime Minister of the United Kingdom, has stated that in trade relations with India is expected to continue, starting in the new year. He made the following remarks after his bilateral talks with Indian Prime Minister Narendra Modi at the G20 summit held in Brazil.

Starmer and Modi met on the sidelines of the summit held in Rio de Janeiro on Monday after which a statement from Downing Street indicated that the UK plans to create a new strategic alliance with India centered on, inter alia, a trade pact, and increased synergies in the fields of security, education, technology, climate among others.

Starmer’s spokesperson said the UK is ready to pursue a trade agreement with India, which happens to be one of the fastest-growing economies in the world, and that the national strategy is quite ambitious.

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“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," Starmer said in a statement released by 10 Downing Street after the bilateral meeting.

A readout of the Starmer-Modi meeting that was sent out from London on Tuesday indicated that the two leaders were both poised to implement a bold UK-India Comprehensive Strategic Partnership that would elevate the Trans–Indian Ocean trade and inversely investment between the two nations with, security and defense, technologies, climate, health, and education all featured.

“As part of this they agreed to relaunch UK-India trade talks early next year. They also welcomed the recent launch of the Technology Security Initiative, and discussed the opportunities for further cooperation on defence and security," a Downing Street spokesperson said.

“Finally both leaders agreed on the strength of cultural ties between the two countries, providing a strong foundation for further ongoing cooperation," the spokesperson added.

Starmer then took to X to term his meeting with the Modi leadership ‘a very productive’ one. At that meeting, which took place after the Starmer Modi meeting, Prime Minister Modi also referred to the meeting between them as an ‘extremely productive’ one on X.

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He said: “For India, the Comprehensive Strategic Partnership with the UK is of immense priority. In the coming years, we are eager to work closely in areas such as technology, green energy, security, innovation and technology."

“We also want to add strength to trade as well as cultural linkages." Moreover, they noted that Starmer is using his trip to the G20 in Brazil to build bridges with the major economic centres of the world towards enhancing growth benefitting the British population. This was not too long after a meeting with President Xi Jinping of China and before another with Prime Minister Shigeru Ishiba of Japan and Australian Prime Minister Anthony Albanese.

Staying within the context of India-UK trade talks, it was disclosed from Downing Street that the DBT will reveal the new Trade Strategy of the government, which is also linked to its Industrial Strategy in the near future, aimed at guiding all subsequent trade talks and realizing trade’s long-term sustainable inclusive resilient growth.

“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," said UK Business and Trade Secretary Jonathan Reynolds.

“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," he said.

Starting from January 2022, the two countries have been negotiating a Free Trade Agreement (FTA). India and the UK recently resumed the discussions that were halted due to the general elections in both countries earlier this year. As per the most recent data, the bilateral trading partnership is projected to be worth GBP 42 billion in the year ending June 2024, which is likely to increase further after the FTA is enforced.

The Labour Party government in the UK may wish to focus on the positive benefits of trade with a view to ensuring that the economy remains strong in the UK. The DBT had earlier explained how the Labour party which is led by Starmer would be keen on reopening negotiations with all FTA partners Following their victory during the general election in July.

Negotiations have now been commenced with the. Negotiations include the Gulf Cooperation Council, Switzerland and South Korea, and the UK is expected to take its place inside the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by Joining December 15.

While the officials on the Indian side had voiced their willingness to recommence negotiations of FTA at the postponed fourteenth round, this declaration of commencement of talks in new year is the first definitive indication of any timelines observed from the British side.

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