David Lammy's Visit to India to Reignite UK-India FTA Discussions

Los Angeles/July 22, 2024
NRIpress.club/Ramesh/A.Gary Singh

The framework for renewed India-United Kingdom free trade agreement (FTA) negotiations will be established during UK Foreign Secretary David Lammy's visit to India this week. This visit marks the first high-profile engagement under the newly elected UK Labour government.

FTA negotiations originally commenced in January 2022 under the previous Conservative administration, aiming to significantly increase the GBP 38.1 billion annual bilateral trade. However, the talks stalled during the 14th round due to impending general elections in both nations.

A report in The Daily Telegraph cited a source in New Delhi stating that India seeks clarity on whether the Labour government will continue the previous discussions or initiate new ones. "The trade deal was nearing completion with the previous government. We want to know if the Labour government will resume from where we left off in March or start anew. Our position on visas for professionals remains unchanged, and we expect a positive outcome with the Labour government," the source said.

Ahead of Labour's sweeping victory in July, Lammy underscored his commitment to finalizing the deal swiftly at the India Global Forum (IGF) in London. He assured Finance Minister Nirmala Sitharaman and Trade Minister Piyush Goyal that Labour is ready to finalize the free trade agreement, lamenting former UK PM Boris Johnson's missed Diwali 2022 deadline.
Lammy indicated a shift in approach, stating that the days of Boris Johnson reciting Rudyard Kipling in Asia are over. He suggested that, if he were to recite poetry in India, it would be Tagore, emphasizing the limitless potential for collaboration and learning between the two countries.

Regarding visas, described as a major sticking point in the FTA talks by UK media, Indian High Commissioner Vikram Doraiswami clarified at the same forum that visas are "not the first priority" for India. He explained that India aims to expand the depth and ambition of goods and services offered to the UK through the FTA, rather than focusing on visas.

Doraiswami emphasized that the FTA is not intended to facilitate immigration but to enable intercompany transfers within the framework of international trade and services under Mode 4 of GATS.

The UK Labour Party, led by Prime Minister Keir Starmer, has pledged to seek a "new strategic partnership with India, including a free trade agreement, and to deepen cooperation in areas such as security, education, technology, and climate change."

Lammy's visit to India this week, ahead of the 57th ASEAN Foreign Ministers' Meeting in Laos, is expected to set the stage for realizing this commitment.

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