British Trade Minister Jonathan Reynolds held fresh discussions with his Indian counterpart Piyush Goyal in London on Friday, in a surprise resumption of negotiations aimed at securing a long-anticipated UK-India free trade agreement. The unscheduled meeting follows earlier talks in the week that ended without a final deal, despite growing urgency on both sides amid ongoing global trade tensions.
Goyal returned to London just days after a two-day visit that failed to close the deal. Talks between the UK and India began in January 2022 but have been delayed multiple times due to political instability in Britain, which has seen four prime ministers since negotiations commenced.
The Labour government, which took power last year, has prioritised securing the trade agreement as part of its post-Brexit trade strategy. The renewed talks come as both countries also attempt to secure separate deals with the United States to remove legacy tariffs introduced during Donald Trump’s presidency.
Major Progress Made on Tariffs
According to government sources and industry insiders, most major issues have now been resolved, including tariff reductions on key goods such as whisky and automobiles. British businesses briefed on the deal this week were told that only a few points remain unresolved.
A UK trade ministry spokesperson confirmed that the discussions had been “constructive,” but stressed: “We have been clear we will only sign a deal that is fair, balanced, and ultimately in the best interests of the British people.”
Investment and Social Security Agreements Also in Play
Alongside the free trade agreement, both governments are negotiating separate treaties on investment protection and social security coordination. The proposed investment treaty would allow companies to take legal action against either government if policy shifts negatively affect their investments, according to sources familiar with the text.
These side agreements are viewed as essential complements to the trade deal, creating a more stable legal and regulatory environment for cross-border businesses and professionals.
Outlook for Final Agreement
Despite earlier delays, momentum appears to be building toward finalising the UK-India trade deal. Both nations are under pressure to diversify trade relationships and bolster economic growth amid broader geopolitical and economic shifts.
The conclusion of this landmark agreement would represent a major milestone in Britain’s post-Brexit trade policy and strengthen ties with one of the world’s fastest-growing major economies.
