Keir Starmer and Narendra Modi Sign Free Trade Agreement Between UK and India
Keir Starmer and Narendra Modi have described the signing of a free trade agreement between the UK and India as a "historic day."
The two leaders said the deal, expected to contribute £4.8bn annually to the UK economy and generate £6bn in investment from businesses in both nations, represents a significant shift in bilateral relations.
Modi and Starmer spoke to reporters at Chequers, the prime minister’s official country residence, following the signing of the agreement, which was finalized in May after more than three years of talks. Modi, speaking through an interpreter, referred to the UK and India as “natural partners.”
Under the agreement, average tariffs on UK exports will drop from 15% to 3%, with whisky duties initially halved and set to decrease further in the coming years. The deal must now be approved by both the British and Indian parliaments, a process expected to take several months.
Some have argued that the deal does not sufficiently support the UK’s financial and legal sectors, while concerns have been raised over India’s human rights and environmental policies. The London Mining Network stated that the agreement lacks strong climate protections, particularly regarding coal production in India.
Discussions on a bilateral investment treaty, which could benefit the City of London, are ongoing, though UK officials reportedly doubt an agreement will be reached soon.
Both governments are also continuing talks on the UK’s proposed carbon border tax, which India firmly opposes.
Modi is visiting the UK for discussions with Starmer and King Charles and is scheduled to attend a business event on Thursday. The prime minister has faced calls to address the case of Jagtar Singh Johal, a Sikh activist from Dumbarton detained in India for eight years.
Johal was arrested in 2017 while in India for his wedding over alleged terrorism-related offences. Though one of the nine cases against him was dismissed this year, he remains in custody. He claims to have been tortured early in his detention and forced to confess.
Ian Murray, the Scotland secretary, stated that Johal’s case is a top priority. “The government is doing everything possible to resolve this,” he said on BBC Radio Scotland. “The foreign secretary met with his Indian counterpart in early June.”
Johal’s brother, Gurpreet Singh Johal, urged the prime minister to secure Jagtar’s release, expressing frustration over past inaction. “I’ve grown tired of promises while my brother remains imprisoned,” he said.
Andrew Griffith, the shadow business secretary, said the deal was only possible “due to Brexit.”
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