After years of back-and-forth, negotiators edge closer to sealing a historic pact between London and New Delhi
The United Kingdom and India are nearing the finish line of a long-anticipated free trade agreement following an intense two-day round of high-level negotiations in London, reported politico.eu.
British business leaders were summoned to No. 10 Downing Street on Tuesday afternoon, signaling the deal’s imminent conclusion. India’s Commerce Minister Piyush Goyal, during a morning roundtable with UK business stakeholders, revealed that “25 of 26 matters have been agreed,” according to sources familiar with the talks.
This breakthrough follows extensive discussions between Goyal and UK Trade Secretary Jonathan Reynolds. British officials, including Amanda Brooks, director general for Trade Negotiations at the Department for Business and Trade, briefed key stakeholders Tuesday, stating that only a few sticking points remain.
Among the unresolved issues are India’s demand for an exemption from the UK’s upcoming carbon border tax on high-emissions imports like steel and aluminum, which is set to be implemented in 2027. Other points of contention include the labeling of Indian territories within the agreement and provisions within the investment treaty’s sunset clause.
Only one issue remains unresolved as negotiators prepare to close a deal that could reshape UK-India trade ties.
Years in the making, the deal gains momentum after key compromises on visas and mobility chapter
Talks for a bilateral trade agreement began in early 2022, with then-Prime Minister Boris Johnson setting a Diwali deadline that ultimately passed without a deal. Renewed momentum came in February this year when Reynolds visited Delhi to restart negotiations.
A major development occurred when India agreed to a limited visa concession — a politically sensitive topic in the UK. The finalized mobility chapter will allow approximately 100 new Indian workers to enter the UK annually, far fewer than India initially sought.
Despite these compromises, both governments maintain a cautious tone. A No. 10 spokesperson said Tuesday that talks had been “constructive and productive,” reaffirming that any final deal would be signed “only in our best interest.”