We previously wrote about the Free Trade Agreement in Southeast Asia, that was entered into of 15 December 2024. It is now in full force and effect and if there is anything you need to know about that, please do contact me. If you have any ambitions to trade with any of those countries in Southeast Asia, let’s discuss it together with our collaborator who has offices in Vietnam, China, Japan and Southern California. We will be able to direct you and there is also the Department of Business and Trade (DBT).
The government has been busy arranging trade deals, the latest being negotiations with the USA and EU but an agreement has now been reached with India and the aim is to finalise the agreement by the end of 2025. Over time the UK government says that the UK/India Trade Agreement will result in the lowering of tariff on clothing, jewellery and frozen prawns leading to cheaper prices and more choice.
The trade deal will also be beneficial to UK businesses which manufacture goods and tariffs will be reduced on such items as car makers and whiskey distillers. For example, tariffs on whiskey and gin being imported from the UK to India will be halved from 150% to 75% before reducing to 40% in the fourth year of the deal. The deal was welcomed by the Scotch Whiskey Association who said that it will be a once in a generation boost. Car tariffs will be reduced to 10%.
If businesses end up exporting more goods to India and making higher profits, this will lead to hiring more staff and investment in the UK.
The Business Secretary, Jonathan Reynolds, said that this trade deal will make it easier for people with certain skills to work in the UK temporarily.
The EU is the biggest trade partner for both the UK and India and therefore a free trade agreement between India and the EU would be highly significant.
The DBT has said that last year’s trade between the UK and India totalled £42bn and predicts that it will boost trade by an additional £25.5bn by 2040, boosting the UK economy by £4.8bn.
The British Chamber of Commerce has said the deal is a “welcome lift for our exporters”.
India is forecast to become the world’s third largest economy and is a home to 1.45bn people, a large market of which a substantial proportion is middle class and India has ambitious targets to grow its exports.
If you have any ambitions in this direction, contact me and we will be able to help as we have a collaborator experienced in the Indian market and we are carrying on work as a UK Law Firm in India.
The DBT projects that bi-lateral trade will reach £25.5bn and add £4bn to UK GDP each year.
There is also a predicted knock-on effect in football. Richard Masters has said that “the continued growth of the Premier League and UK businesses in India will have a positive impact on our domestic economy and we welcome the news of this new trade deal secured by government which will support UK businesses operating in India”.
Lynne Brooke
The Brooke Law Group
(photo source: Rawpixel_Freepik)
Winter 2021