India and Gulf nations top UK trade deal agenda, confirms business minister

The UK is accelerating efforts to secure free trade agreements (FTAs) with India and the Gulf Cooperation Council (GCC) as part of its post-Brexit strategy to expand global trade ties.

UK Business and Trade Minister Jonathan Reynolds highlighted the importance of these negotiations, which are crucial for bolstering Britain’s economic and diplomatic relationships in key markets outside Europe.

Talks with the six-member GCC, including Saudi Arabia, Qatar, and the UAE, could resume as early as next week, while negotiations with India remain a top priority.

Gulf trade talks set to restart

Discussions with the Gulf Cooperation Council are expected to resume next week, with the UK seeking a comprehensive FTA that covers goods and services.

Trade between the UK and the GCC reached £43 billion in 2022, underscoring the economic significance of the region.

A successful agreement would provide preferential access for British businesses in sectors such as energy, investment, and finance.

At the International Investment Summit in London, Reynolds emphasized the urgency of these talks: “There are clear economic and commercial reasons why the Gulf and India are our top priorities.”

His remarks reaffirm the UK government’s commitment to expanding trade beyond Europe following Brexit.

UK-India trade deal progress

India, with its rapidly growing economy and increasing global influence, remains a key partner for the UK.

The two nations are entering their 15th round of negotiations aimed at securing a mutually beneficial trade deal.

Trade between the UK and India was valued at £34 billion in 2022, and both governments are eager to boost this figure further.

However, securing a trade agreement with India has proven challenging, as both sides seek to protect sensitive sectors.

India’s Commerce Minister, Piyush Goyal, recently stressed the importance of a “systematic” approach to the talks, ensuring that the deal is fair and beneficial for both countries.

India’s booming technology and pharmaceutical industries offer significant opportunities for British businesses, but concerns around market access and regulatory hurdles remain key sticking points.

Post-Brexit trade strategy

Since leaving the European Union, the UK has focused on forging trade agreements worldwide.

While deals with smaller markets like Australia, New Zealand, and Singapore have been successfully concluded, negotiations with larger economies such as India and the GCC have been more complex.

Former Prime Minister Boris Johnson had promised a trade agreement with India by Diwali 2022, but the timeline has since slipped.

Similarly, talks with the GCC have moved slowly due to differing priorities and challenges in aligning trade standards.

Reynolds emphasized the importance of these negotiations not only for trade but also for enhancing the UK’s diplomatic influence.

“While trade agreements are not primarily about foreign policy, they offer an opportunity for Britain to foster positive relationships with countries, even those with different political systems,” he explained.

Challenges and geopolitical considerations

Despite the UK government’s push for swift progress, Reynolds acknowledged that finalizing these deals will take time.

“When people say a deal is half done, obviously the easy bits are done first,” he said, warning that the remaining issues are more complex and could delay progress.

Negotiating with diverse economies like India and the Gulf states adds layers of complexity, given their distinct regulatory frameworks and political landscapes.

Geopolitical factors could also influence the talks. The GCC nations are key energy suppliers, and any disruptions in the region could affect the UK’s energy security.

Additionally, India’s growing role in global supply chains, particularly in technology and pharmaceuticals, makes it a critical partner, but also increases the pressure to ensure the agreement is balanced and future-proof.

The post India and Gulf nations top UK trade deal agenda, confirms business minister appeared first on Invezz