UK, India ends the free trade agreement in the midst of tariffs while Trump is waiting for the wings
The United Kingdom and India concluded the free trade agreement after three years of intermittent negotiations, with the aim of strengthening bilateral trade by $ 34 billion by 2040.
What happened: The deal between the fifth and sixth in the world comes in the wake of the identification chaos raised by the American President Donald Trump. The agreement is expected to reduce customs tariffs on goods such as whiskey and create opportunities for British companies in India and Indian workers in the United Kingdom, Reuters said.
Indian Prime Minister Narendra Modi The deal was described as “ambitious and useful for both parties”, while the British Prime Minister Sir Care Starmer He praised her as a “new era of trade”.
This deal represents India’s step towards the traditional liberalization of its protected markets, including the auto sector, and sets a standard for its future interactions with the main Western powers. For the United Kingdom, this is the most essential commercial agreement since its exit from the European Union in 2020.
The Ministry of Trade in India announced that, under the agreement, 99 % of Indian exports – including textiles – will be exempted from duties. On the other hand, the UK will witness tariff cuts on 90 % of the tariff lines.
The deal is expected to strengthen the annual economic production in the United Kingdom by 4.8 billion pounds (6.41 billion dollars) by 2040 – a modest but important gain for GDP of 2.6 trillion pounds (3.47 trillion dollars) in 2024.
Why do it matter: It is interesting, that the historical deal between the United Kingdom and India comes at a time when a tangible deal is awaited between the United States and India.
A few weeks ago, US Vice President JD Vance He visited India, where he ended the conditions for commercial negotiation, with the aim of doubling the bilateral trade between the United States and India to 500 billion dollars by the end of the decade. At the same time, the US Treasury Secretary Scott Pesin Repeat several times that India could be the first country to sign a commercial deal with the United States
It is worth noting that President Trump told the correspondents on Tuesday that India offered to drop all definitions on American imports. “They have already agreed. They never did so to anyone other than me,” Trump confirmed.
However, India has not issued any official data on this issue, as trade negotiations with the United States are still ongoing.
Photo via Shutterstock
Disintegration: This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Beenzinga editors.
