The UK's Business and Trade Secretary overseeing the negotiations has informed a parliamentary panel that India and the UK are on the brink of reaching a highly beneficial free trade agreement (FTA). However, the remaining issues to be resolved are the most challenging ones. Kemi Badenoch provided these insights while responding to inquiries from the cross-party House of Commons Business and Trade Committee.
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This committee is responsible for reviewing the activities of the Department of Business and Trade (DBT). During this session, she was specifically asked about the timeline for finalizing the FTA, which has undergone 12 rounds of negotiations.
The Cabinet minister faced specific questions regarding recent UK media reports suggesting that British Prime Minister Rishi Sunak, known for his passion for cricket, might be considering a return visit to India next month. The purpose of this visit would be to sign the agreement on the sidelines of the World Cup, which is taking place across the country.
In response to these reports, Badenoch stated, "We have never established a deadline. I believe these newspaper reports are quite optimistic." She continued, "While we are indeed in the final stages and a visit is possible, I am not inclined to set a specific timeframe. We will conclude the negotiations when we reach an agreement."
Regarding the previous statement made by former British Prime Minister Boris Johnson, who had set a deadline for an agreement by Diwali 2022, Badenoch emphasized that the current government, led by Sunak, follows a different approach and does not impose any fixed end dates.
"We encountered a similar situation last year when there was talk of finalizing the deal by Diwali. Setting a specific date can lead to complications on our end. Our approach has consistently been to prioritize the quality of the agreement over the timing. We will reach an agreement that benefits both India and the UK, and we are getting closer to that point," she explained.
She also brought up the Pareto principle, often referred to as the 80/20 principle, named after Italian economist Vilfredo Pareto. This principle suggests that roughly 80 percent of outcomes result from 20 percent of causes. In the context of the FTA negotiations, she indicated that the remaining issues, though relatively small in number, are proving to be the most challenging.
Badenoch assessed the progress made in the Free Trade Agreement (FTA) negotiations during her recent visit to India. This visit aligned with Round 12 of the FTA discussions and included discussions with her Indian counterpart, Commerce and Industry Minister Piyush Goyal.
During his visit to New Delhi for the G20 Leaders' Summit earlier this month, Prime Minister Rishi Sunak also reaffirmed his commitment to an FTA. He emphasized that he wouldn't rush the process while speaking to reporters.
Meanwhile, amid a diplomatic dispute involving two of its allies, India and Canada, concerning the contentious issue of pro-Khalistan extremism, Sunak's spokesperson at Downing Street emphasized this week that trade negotiations with New Delhi continue to progress as planned.
"The trade negotiations will maintain their current momentum. If we have any concerns regarding countries we are engaged in trade negotiations with, we will address those concerns through direct channels," stated the spokesperson during a press briefing on Tuesday.
Official data from the Department of Business and Trade (DBT) indicates that bilateral trade between the UK and India reached an estimated GBP 36 billion in 2022. It is anticipated that this figure will experience a substantial increase once the Free Trade Agreement (FTA) is in effect.
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