UK and India An agreement signed free This Tuesday (6), after Customs tariff disorders Boss USA, Donald Trumpand Both sides were forced to accelerate the efforts made to increase whiskey, cars and food trade.
The agreement, between the fifth and To the sixth The largest economies Do The world has been completed after three years of intermittent negotiations and aims to increase bilateral trade by another 25.5 billion pounds (34 billion dollars) By 2040, with liberal access to the market and the most moderate commercial restrictions.
Indian Prime Minister, Narindra Modi said Trade Agreement It was “ambition and useful for both parties. British Prime Minister Kiir Starmer said that the deal will strengthen alliances and reduce commercial barriers in this “new trade era.”
The agreement reduces prices on products such as advanced spare parts and food products, E I agree with the shares on both sides of the auto imports.
This will allow more British companies to compete for contracts in India It will allow workers Indians Traveling to the United Kingdom To work without changing the points -based immigration system nation.
Both countries are also looking for bilateral agreements with the United States to remove some Trump prices that bothered the World Trade System, and the resulting turmoil in London and New Delhi needed to close a trade agreement between the United Kingdom and India.
The covenant represents the opening of the markets stored for a long time By India, Including CAR, giving an early example of the potential approach to the Southern Nation of Asia by dealing with large Western powers, such as the United States and the European Union.
It also falls on the most important trade agreement in the United Kingdom Since I left the European Union in 2020.
History of negotiations
Negotiations on the Free Trade Agreement between India E S. UK Begin initially in January 2022 and became a symbol of hopes UK In its independent trade policy after that Britain’s exit from the European Union.
But the negotiations were interrupted with S. UK Owning four of the prime ministers who are different since the date of issuance and elections in both countries last year.
British Labor Party, Electrify Last July, He quickly acted to conclude an agreement after restarting the negotiations in February, with accurate talks between London’s trade ministers last week to close an agreement.
The whiskey prices will decrease to half from 150 % to 75 % before they drop to 40 % in the tenth year of the agreement.
The agreement also covers the regulations for the rules of origin, allowing manufacturers to reach lower rates, even if they use inputs from other places.
It includes provisions on the service and purchase sector, allowing British companies to compete for more contracts in India. Regarding visas, there are behaviors about moving business to facilitate travel to professionals at work.
Negotiations on the Bilateral Investment Treaty have not been completed along with the Free Trade Agreement, despite the signing of a treaty on social security contributions.
Professor says there is a structural problem in the global economy