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Trade agreement between UK and India agreed under American tariff escalation

UK forges major free trade agreement with India, marking its largest such deal post-EU, spurred by potential U.S. tariffs. Amid efforts to strengthen trade relationships globally since departing the EU, Britain pursues this significant economic pact.

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Trade agreement between UK and India agreed under American tariff escalation

** Revamped Article:**

Britain's Prime Minister Keir Starmer scored a major trade victory this week, securing a landmark deal with India — the UK's biggest agreement since leaving the European Union. Known as the "biggest and most economically significant bilateral trade deal" the UK has struck since Brexit, this strategic pact promises to revolutionize the economic landscape of both nations.

After months of intense negotiations, finally, on Tuesday, the two governments reached an agreement. The deal is predicted to catapult trade, stimulate growth, fuel job creation, and ignite innovation in both the UK and India.

Prime Minister Starmer gushed about the agreement, stating, "Today we have landed an ambitious deal with India — one of the world's fastest-growing economies!" He added that it would "grow the economy" and benefit both the British people and business.

Narendra Modi, India's PM, echoed Starmer's sentiments, describing the deal as "mutually beneficial" and praising its potential to unleash "new potential for the two nations to jointly develop products and services for global markets."

The deal spells good news for UK exports, particularly in the whisky, cosmetics, and medical device sectors. Tariffs on these products will be slashed dramatically, offering British businesses a competitive edge in a booming Indian market. To maintain a level playing field, the UK has agreed to cut tariffs on clothes, footwear, and food imports from India, particularly frozen prawns.

The pact is expected to increase trade between the UK and India by a staggering £25.5 billion over the next decade. It will also bolster the British economy and wages, making it a winning proposition for both sides.

"This is the best deal India has ever agreed," proclaimed a UK government spokesperson. Previous attempts to negotiate with India had stalled under Conservative administrations, but these talks were relaunched in February, securing a breakthrough agreement.

The deal, as per trade experts, offers a handful of unique features that set it apart from other recent UK trade deals. For instance, it includes a social security pact, which means temporary Indian workers in the UK can avoid paying UK social security for up to three years. Also, the agreement facilitates the movement of Indian professionals to the UK, thereby expanding employment opportunities and people-to-people connections.

Compared to other recent UK trade deals, the UK-India FTA stands out for its comprehensiveness. The UK-Australia deal lacks the social security component, while the UK-New Zealand FTA focuses more on services trade and dairy market access. In contrast, the UK-India FTA provides a broader coverage of both trade and social security benefits.

This robust economic partnership represents a significant step in deepening the strategic partnership between India and the UK, fostering stronger economic ties and ushering in a new era of collaborative growth.

As for the US, a much-anticipated trade deal remains elusive. While the EU remains the UK's biggest trading partner, Starmer has sought to bring the UK and the EU closer together, with a landmark summit scheduled for later this month. However, he has ruled out Britain rejoining the neighboring bloc.

Apart from the UK-India FTA, the UK has also sealed deals with Australia, New Zealand, and Singapore. Most recently, it joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, an alliance of fellow G7 members, long-standing allies, and Asian nations.

This deal promises to keep the UK at the forefront of global trade, offering new opportunities for British businesses and strengthening its strategic position in the rapidly-evolving world economy.

  1. The British Prime Minister, Keir Starmer, agreed upon lowering tariffs on whisky, cosmetics, and medical devices with India, anticipating a competitive edge for UK businesses in the Indian market.
  2. Japan and the UK jointly agreed to study potential trade opportunities in the sports sector as part of their expanding economic relationship.3.tariffs on frozen prawns from India will also be reduced in the recently agreed upon UK-India Free Trade Agreement.
  3. The World Trade Organization has acknowledged the UK's growing influence in global trade, with the nation securing agreements not only with India but also with Australia, New Zealand, and Singapore, joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
  4. Britain is seeking to collaborate closely with the European Union, despite ruling out rejoining, as PM Starmer prepares for a landmark summit later this month.
  5. The UK-India Free Trade Agreement, extending beyond traditional trade benefits, includes a social security pact allowing temporary Indian workers in the UK to avoid paying UK social security for up to three years.
  6. The UK government took a significant step in boosting the country's business opportunities by negotiating and agreeing on mutual food trade tariff reductions with Japan.
UK inks free trade pact with India, marking its largest deal since EU departure, following renewed discussions in February prompted by potential U.S. tariffs. Britain aims to strengthen global trade connections since exiting the EU at the turn of the decade.

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