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India and the UK on Friday put aside their differences over the Russian invasion of Ukraine and set an ambitious target of concluding a “comprehensive and balanced” free trade agreement (FTA) by Diwali this year to double bilateral trade by 2030. Prime Minister Narendra Modi and his visiting British counterpart Boris Johnson announced measures to enhance defence, security and trade partnerships.
Johnson said India shared the UK’s “anxiety about autocracies and autocratic coercions around the world”, while acknowledging India’s longstanding friendship with Russia. In the joint statement after their bilateral meeting, both sides “unequivocally condemned civilian deaths and reiterated the need for an immediate cessation of hostilities and a peaceful resolution of the conflict”.
Both leaders also called for an early resolution of all pending market access issues between the two nations in a “balanced manner” and noted that the FTA would unlock the full potential of the trade and commercial relationship, boosting jobs, investment, and exports.
“As the next round of talks begins here next week, we are telling our negotiators to get it done by Diwali in October. This could double our trade and investment by the end of the decade,” Johnson, who was on a two-day visit to India, said in a joint press conference.
“…we now have to reach a free trade agreement, a deal where you can lift those tariffs –you can…on our machinery and apples – actually you’ve already done it on apples and we, in turn, can lift the tariffs on your rice and textiles,” he said.
Johnson said that in the free trade deal, there would be some difficult issues. “Tariff on whisky is a tough one. It would be great if we can fix that. There are big opportunities and we can get it done,” he added.
ALSO READ: UK not pressing India to change stance in Ukraine conflict: Foreign Secy
In May last year, both nations had announced the launch of an enhanced trade partnership (ETP), which would include negotiating a comprehensive FTA and an interim trade agreement for delivering early gains. The trade deal is expected to resolve market access issues, boost exports, and strengthen trade partnership between the two nations. However, both sides now seem to have decided to directly negotiate an FTA without going for an interim deal.
The first and the second round of negotiations for the FTA took place in January and March, respectively. The third round of negotiations will start on Monday in India.
Modi said India had had two trade pacts with the UAE and Australia since February. “India will move forward with similar momentum and commitment with respect to a trade deal with the UK,” he added.
Both leaders looked forward to finalising the mutual recognition of qualifications and a framework for nursing staff, and agreed to continue cooperation on outstanding areas related to social security arrangements and legal services.
In a separate press briefing, Foreign Secretary Harsh V Shringla told reporters that one of the main emphases of the meeting was to further strengthen the trade ties. “Trade teams have been mandated to complete the FTA by the last quarter of this year,” he added.
On the Russia-Ukraine conflict, the foreign secretary said Prime Minister Modi expressed deep concern over the ongoing situation in Ukraine and the mounting humanitarian crisis there. During the talks, there was “no pressure” applied from the British side regarding the issue of adherence to sanctions on Russia, and Johnson just shared his views on the Ukraine issue, he said.
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