PULSE POINTS:
❓What Happened: Britain and India have reached a free trade agreement to reduce tariffs on various products, including Scotch whisky.
👥 Who’s Involved: British Prime Minister Keir Starmer, Indian Prime Minister Narendra Modi, the British and Indian governments.
📍 Where & When: Announcement made in London, negotiations started over three years ago.
💬 Key Quote: “This is the biggest trade deal that we, the UK, have done since we left the EU, and it’s the most ambitious trade deal that India has ever done,” said Prime Minister Starmer.
⚠️ Impact: The agreement is expected to boost bilateral trade by £25.5 billion (~$34.1 billion) annually and significantly increase Scotch whisky exports to India.
IN FULL:
Britain and India have announced a significant free trade agreement to slash tariffs on a range of products, including Scotch whisky. This long-awaited deal comes after more than three years of negotiations.
British Prime Minister Keir Starmer hailed the agreement as a “landmark” event, describing it as “fantastic news for British business, British workers and British shoppers.” His Indian counterpart, Prime Minister Narendra Modi, echoed this sentiment, calling the deal “ambitious and mutually beneficial.”
“This is the biggest trade deal that we, the UK, have done since we left the EU, and it’s the most ambitious trade deal that India has ever done,” Prime Minister Starmer said.
The British government detailed that the agreement would cut Indian import taxes on goods such as whisky, cosmetics, medical supplies, and automotive parts. Notably, tariffs on whisky and gin will be reduced from 150 percent to 75 percent, eventually dropping to 40 percent over the next decade. Automotive tariffs will see a significant decrease from over 100 percent to 10 percent under a quota system.
India’s Trade Ministry emphasized that 99 percent of Indian exports would be exempt from import duties under this new agreement. Trade Minister Piyush Goyal stated, “This brings us closer to our goal of becoming a global economic powerhouse,” highlighting the deal’s potential to enhance India’s role in global value chains.
The agreement, which covers both goods and services, is projected to increase bilateral trade by the equivalent of $34.1 billion annually. Mark Kent, CEO of the Scotch Whisky Association, described the deal as “transformational,” noting its potential to boost Scotch whisky exports to India by $1.3 billion over the next five years.
Formal talks for this free trade agreement began in 2022, following Brexit. Prior to Brexit, Britain was unable to strike any bilateral trade deals, as the European Union (EU) controls its member states’ trade policy.
.jpg){kind=link}
