Sunak And Modi Recommit To U.K.-India Trade Deal Ahead Of Elections Loom
Successive deadlines have been missed, and it now appears unlikely that a deal will be reached before India holds national elections.
(Bloomberg) -- The UK and India’s prime ministers reaffirmed their commitment to completing a free trade agreement, just days after the latest round of negotiations looked set to end with major issues still outstanding.
Narendra Modi said on social media site X, formerly known as Twitter, that he had held a “good conversation” with his British counterpart Rishi Sunak on Tuesday and that they will work for an “early conclusion of a mutually beneficial” accord.
In an emailed statement, Downing Street said the pair discussed “recent progress” on the FTA negotiations and agreed on the “importance of securing a historic and comprehensive deal.”
The talks, which have dragged on for more than two years, were initially hoped to be completed in October 2022 to coincide with the Hindu festival of Diwali. Successive deadlines have since been missed, and it now appears unlikely that a deal will be reached before India holds national elections, expected in April.
Last week British officials returned from New Delhi, with people close to the talks saying there were still key matters to be resolved in goods, services and investment, Bloomberg reported. Those people said it was likely the 14th round of talks would now conclude, to be picked up after the Indian elections.
For Sunak, a trade deal with India would be a welcome boost ahead of the UK’s general election, expected in the second half of this year. Brexit supporters in the ruling Conservative Party, which is currently lagging Labour in polls, had touted deeper trading relationships with countries outside the European Union as one of the key benefits of leaving the bloc.
The UK’s Department for Business and Trade has continually said it will only agree an FTA with India if it’s in the best interests of the British people and the economy.
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