UK-India Trade Talks: Stepping Forward Amid Global Tariff Tensions

British and Indian trade ministers met unexpectedly in London to advance negotiations on a free trade agreement. Talks, initiated in January 2022, were stalled by political changes but are now gaining momentum under the current Labour government, with outstanding issues narrowing down.

In a surprising turn of events, British Trade Minister Jonathan Reynolds convened in London with his Indian counterpart Piyush Goyal on Friday, aiming to break through impasses in trade negotiations between the two nations. This unexpected meeting comes as both countries endeavor to finalize a free trade agreement that has been in discussion since early 2022. The discussions resumed amidst the backdrop of U.S. tariffs affecting global trade dynamics.

The negotiations have faced delays due to political upheavals within Britain, with four different prime ministers since talks began. However, the Labour government, which rose to power last year, appears poised to seal the deal. Recent discussions have been productive, although a few issues remain, such as tariffs on whisky and automobiles. Industry insiders briefed on the details believe the agreement is within reach.

The deal's significance is heightened by the ongoing pursuit of bilateral arrangements with the U.S. to lift tariffs imposed under the Trump administration. A potential companion agreement includes an investment treaty, which would allow companies protections against policy changes that might adversely impact their investments.

(With inputs from agencies.)