Monday, May 6, 2024
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Potential Conflict of Interest Arises for British PM Sunak in India-UK Trade Negotiations

The Observer has highlighted that both the UK’s opposition Labour Party and trade experts are raising inquiries about the implications of Infosys – a major software services company co-founded by Akshata Murty’s father, Narayana Murthy – potentially benefiting from the trade deal

PRAVASISAMWAD.COM

British Prime Minister Rishi Sunak is facing questions about transparency and potential conflicts of interest due to his wife Akshata Murty’s substantial holdings of Infosys shares, valued at approximately £500 million. These concerns have emerged in the context of a proposed free trade agreement (FTA) between India and the UK, as reported by PTI.

The Observer has highlighted that both the UK’s opposition Labour Party and trade experts are raising inquiries about the implications of Infosys – a major software services company co-founded by Akshata Murty’s father, Narayana Murthy – potentially benefiting from the trade deal. The ongoing negotiations, now in their 12th round, have taken on added significance as Prime Minister Sunak is poised to embark on his inaugural visit to India for the G20 Leaders’ Summit next month.

Darren Jones, a Labour MP and chair of the cross-party House of Commons Business and Trade Select Committee, emphasized the importance of declaring any relevant interests properly, citing recent lessons learned by the Prime Minister. Jones has been overseeing the scrutiny of the FTA talks and expects Sunak to ensure transparency in relation to the India trade deal.

This issue is not the first instance where Prime Minister Sunak’s financial declarations have come under scrutiny. The UK parliamentary watchdog previously investigated a matter involving his failure to correctly disclose his wife’s shares in the company Koru Kids, which had the potential to gain from government budget policies. Sunak acknowledged the unintentional oversight, attributing it to confusion, and expressed his apologies. The matter was subsequently resolved.

  • Alan Manning, a professor of economics at the London School of Economics, offered insights into the situation, underscoring that software services constitute a substantial segment of India’s exports

  • Given this context, Manning suggested that to avoid any appearance of a conflict of interest, the Prime Minister should recuse himself from the negotiation aspects related to immigration, as his family’s financial stake could potentially be affected by such decisions

According to the Observer report, Infosys – a company that has engaged with both the British government and various UK businesses – is reportedly seeking improved access for its numerous contract workers to the UK. This goal includes advocating for changes to the visa regulations, particularly for workers in sectors such as information technology and artificial intelligence. The allocation of more visas for these workers is believed to be a significant point of interest for India in the ongoing negotiations.

The newspaper also revealed that the Foreign, Commonwealth and Development Office (FCDO) advised against the House of Commons Business and Trade Select Committee’s plans to conduct a trip to India in the coming months for an examination of pertinent issues surrounding the potential FTA. Committee chair Darren Jones shared that the government suggested postponing the trip to the following year due to the sensitivity of ongoing trade negotiations.

While the Labour Party is supportive of a trade deal between the UK and India, Shadow Trade Secretary Nick Thomas-Symonds has stressed the importance of Prime Minister Sunak being forthcoming about any relevant business ties and his personal involvement in the negotiations.

Alan Manning, a professor of economics at the London School of Economics, offered insights into the situation, underscoring that software services constitute a substantial segment of India’s exports. Given this context, Manning suggested that to avoid any appearance of a conflict of interest, the Prime Minister should recuse himself from the negotiation aspects related to immigration, as his family’s financial stake could potentially be affected by such decisions.

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David Solomon
David Solomon
(For over four decades, David Solomon’s insightful stories about people, places, animals –in fact almost anything and everything in India and abroad – as a journalist and traveler, continue to engross, thrill, and delight people like sparkling wine. Photography is his passion.)

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