The alleged ‘debacle’ of the UK-India trade deal is now a thing of the past. Secretary of State for International Trade, and President of the Board of Trade, Kemi Badenoch has silenced all critics, post her visit to New Delhi on 12th December for the sixth round of Free Trade Agreement (FTA) negotiations between the UK and India. Further cementing the FTA, Badenoch is taking the negotiation forward. Asian Voice exclusively spoke to the Trade Secretary about her India visit, the UK-India Free Trade Agreement, the mutual benefits of the FTA for both countries and the way forward. She told the newsweekly that the visit was ‘very productive’ and helped in ‘building a more personal relationship’ to drive negotiations. She has affirmed that she won’t sign it until they have the best deal on the table.
Following is the EXCLUSIVE interview with the Secretary of State for International Trade.
AV - During Diwali due to certain adverse comments from the Home Secretary the FTA closure fell through. Do you think you have been able to salvage the relationship through your visit and discussions?
KB: We said we would conclude the majority of talks by Diwali and we did that – we provisionally closed the majority of chapters by that date. The visit was very productive in refreshing talks, which was important given we have had a change of Prime Minister. It was the first opportunity I have had to come to India to meet my counterpart, Indian Minister of Commerce and Industry Piyush Goyal, face to face. It made a nice change from our usual online meetings – building a more personal relationship is very helpful to drive negotiations. I think it was also helpful for the negotiating teams on both sides to hear both ministers give their direct views on our vision for an ambitious and balanced deal that’s a win-win for both sides.
AV - Prime Minister Sunak reportedly committed to working 'at pace' towards an FTA that does not “sacrifice quality for speed” after that October deadline was missed amid political turmoil in the UK. How will the two nations make up for the time lost?
KB: The PM and I are in total agreement that picking an arbitrary deadline to conclude is not the best way to conduct a negotiation. I want to make sure negotiators are not under pressure to rush a deal. A quality deal that is ambitious and balanced is key. But we also know that this is not something that we can spend forever working on. We see a way forward in the talks for a balanced deal that compliments both our systems. But I'm clear I won't sign until I have the best deal on the table.
AV - Will the FTA imply that more Indian professionals and students will be able to come to the UK to work and study?
KB: To be clear, what we are considering within the scope of the trade deal are mobility visas –
business visas, and professional visas. Student visas are not something my department looks at – it’s not something that would be within a free trade agreement. What we're doing around the FTA is about ensuring that both nations can send over their best and brightest to grow their businesses and make it easier to do trade in each other's nations. A free trade agreement only works if both sides can take full advantage of it and that's what business mobility – which can be hugely beneficial to companies in the UK as well as for Indian businesses - looks at.
AV - How is the FTA between the two countries a mutually beneficial deal?
KB: Our shared priority is to have an ambitious and balanced deal. We've been in discussions since January and the negotiations are progressing very well. But we need something that's going to be mutually beneficial to both the UK and India. We are already very close trading partners, and we want to build on our existing strong friendship. We're looking into many areas, including goods, services, and investment protections. What we’re looking at in this deal is how we can go above and beyond our existing trading relationship. We want a trade deal that works for future generations, not just this one.
AV - What is the next plan of action for India and the UK to take the FTA forward?
KB: Talks are in a good place following the visit and recent negotiating round. We’re looking ahead now to round seven which will likely take place in early 2023. We’ve set our excellent negotiating teams the challenge to work at pace, as they have been doing. Our focus remains on securing a forward-facing deal which works for both sides and deepens our strong trading relationship, worth £29 billion according to our latest 12-month figures.
