Home FEATURED NEWS UK dangers being too tender in India commerce talks, says ex-minister

UK dangers being too tender in India commerce talks, says ex-minister

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Former British prime minister Boris Johnson was warned that the UK was repeating the mistakes of the UK-Australia trade deal by being too tender in its negotiations with India, based on a letter seen by the Financial Times.

The then agriculture secretary George Eustice wrote to Johnson on June 27 to complain that an inner Whitehall settlement designed to keep away from a repeat of the one-sided concessions made to Australia on meals exports had been “watered down”.

“We cannot risk another outcome such as Australia where the value of the UK agri-food market access offer was nearly double what we got in return,” Eustice wrote after the conclusion of the fourth spherical of UK-India commerce negotiations.

His doubts emerged because the UK makes an attempt to agree a multibillion pound trade deal with India that Rishi Sunak hailed on the sidelines of the G20 summit in Indonesia on Tuesday as a “fantastic opportunity” for Britain.

Hopes of an settlement in time for the Hindu competition of Diwali final month took a success after the house secretary Suella Braverman expressed “reservations” that the deal could result in elevated immigration — drawing an offended response from New Delhi.

In his letter Eustice warned that the Cabinet Office had “watered down” beforehand agreed Whitehall safeguards that might have enabled ministers from different departments to push again if the Department of Trade made concessions they thought-about to be too deep.

On Monday Eustice, who led the agriculture division, Defra, between 2020 and 2022, took the gloss off the UK-Australia deal introduced by Johnson in December 2021 by telling MPs the settlement had given away “far too much for far too little in return”. 

Eustice stated in his letter to Johnson that the UK-India deal may very well be a “huge opportunity” for UK meals exports, together with whisky, salmon and cheese, however that he had issues after India initially supplied to liberalise tariffs on solely half as many agricultural merchandise as British negotiators had put ahead.

“I am aware that India is a tough negotiator but I firmly believe the UK should be too,” he wrote.

Whitehall insiders confirmed that the dispute over the administration of
the India-UK negotiations had not been resolved by the point Eustice
left workplace this summer time.

Negotiations between the 2 sides are persevering with, however because the departure of Johnson’s successor, Liz Truss, from Downing Street expectations of a fast decision has slipped, with officers on either side suggesting the brand new goal for a deal could be subsequent March.

At the G20 Summit Sunak stated he was wanting ahead to discussing a commerce pact with Indian prime minister Narendra Modi on Wednesday, when the 2 leaders will meet for his or her first formal bilateral assembly.

But Sunak added he wouldn’t rush right into a cope with India. “I wouldn’t sacrifice quality for speed. And that goes for all trade deals. It’s important that we get them right rather than rush them and so that’s the approach I’ll take on trade deals.” 

Ahead of the assembly, Sunak and Modi confirmed a reciprocal visa scheme that may provide 3,000 locations to 18—30 year-old degree-educated Indians a yr to come back to the UK for as much as two years.

If concluded, the commerce deal could be probably the most important reached by Britain because it left the EU. India is on observe to be one of many world’s fastest-growing giant economies this yr, and the nation not too long ago overtook the UK to change into the world’s fifth-largest financial system.

For India, the proposed FTA could be the newest in a collection of commerce pacts concluded by Modi’s authorities, however negotiators have struggled to agree the ultimate particulars.

Sensitive areas embrace a push by New Delhi to safe larger visa entry to Britain for Indian IT professionals, and the UK’s want for India to open its protected providers trade to British legislation and monetary corporations.

Access to India’s spirits and automobile markets have been amongst different points broached within the talks, in addition to information safety for UK-based firms that don’t need to fall foul of India’s more and more robust regulation of the web.

Downing Street stated it will not touch upon leaks or particulars of stay negotiations. “We will only sign a deal that is fair, reciprocal and ultimately in the best interests of the British people and the economy,” a spokesperson added.

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