UK-India Interim Trade Agreement Looks Close

The UK government is looking to start formal negotiations with India before the end of this year, after an initial consultation period finished at the end of August.

The Department for International Trade (DIT) Department is hoping to negotiate an interim agreement, which would allow for freer trade between the two countries. International Trade Secretary Liz Truss said that an interim agreement could be closed to soon slash tariffs on British exports and see tariffs slashed on products like Scotch whisky before a full agreement is in place.

Scotch whisky is one of the UK’s main export items but restricted to India by the 150% tariffs applied at import. This means that just 2% of the 50m bottles of whisky sold in India each year come from the UK.

A tariff reduction could unlock “well over £1bn of export growth for Scotch Whisky over the first five years”, according to Karen Betts, chief executive of the Scotch Whisky Association: “This would be a significant boost for the industry and an early success for the UK government in its trade talks with India.”

It is suggested that Indian producers of products like rice could get greater access to the UK market under an interim deal.

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