Reference News website reported on May 7 that according to the report of "Nikkei Asian Review" on May 7, the governments of Britain and India announced on the 6th that they have reached an agreement on the conclusion of a free trade agreement. This negotiation began in 2022, and both sides quickly accelerated the negotiation process due to concerns that "Trump tariffs" would lead to the stagnation of free trade.
UK Prime Minister Keir Starmer said: "Signing an agreement with economically fast-growing India will benefit the people and businesses of the UK." Indian Prime Minister Narendra Modi wrote on X social platform that the agreement "will promote trade, investment, growth, employment, and innovation between the two countries."
The UK Ministry of Business and Trade stated that 90% of the tariffs on goods exported from the UK to India will be reduced. Many categories will gradually achieve zero tariffs. The tariffs for whisky and gin will be halved from 150% to 75%, and in the medium to long term, they will be reduced to 40%. Previously, automobile tariffs exceeding 100% will be reduced to 10%.
In the products that India exports to the UK, tariffs for clothing, footwear, and frozen shrimp will decrease.
According to the UK's estimate, due to the reduction in tariffs, by 2040, the trade volume between the UK and India will rise to 25.5 billion pounds (approximately 34 billion US dollars), and the UK's gross domestic product (GDP) will increase by 4.8 billion pounds.
For the UK which left the EU in 2020, the free trade agreement with India is a new highlight in its trade policy following the entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). India has proposed a growth strategy to support the manufacturing of automobiles and smartphones and expand exports.
Although the UK and India held more than ten rounds of consultations starting from January 2022, the negotiation progress was slow. It was interrupted due to the general elections of both countries in 2024. In February this year, after the US Trump administration came to power, Jonathan Reynolds, the UK Secretary of State for Business and Trade, and Piyush Goyal, the Indian Minister of Commerce and Industry, restarted the negotiations, reaching an agreement in less than three months. (Translated by Liu Jieqiu)
Original article: https://www.toutiao.com/article/7501651873598816795/
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