UK-India Free Trade Agreement 90% Complete as Key Issues Remain
The United Kingdom and India have made significant progress in their long-negotiated free trade agreement (FTA), with British officials reporting that 90% of the deal has been agreed upon during a private briefing shared with businesses this week, according to The Guardian.
This agreement encompasses several critical sectors and represents a major milestone in the bilateral relations between the two nations. Notably, it addresses long-standing tensions regarding mobility and visa access for Indian professionals, a key demand from New Delhi in recent years. Government sources indicate that the mobility issue has been “largely resolved,” allowing for further progress on negotiations related to services, investment, and digital trade.
However, a few sticking points still need to be addressed before the deal can be finalized. Tariffs on British whisky, automobiles, and pharmaceutical products remain unsettled. Both governments are optimistic, with officials noting that only a handful of issues require resolution at the political level.
The ongoing discussions also involve a parallel investment treaty aimed at protecting financial services, which is expected to strengthen investment ties between the two economies.
According to British negotiators from the Department for Business and Trade, key sections of the trade agreement have been settled, and India aims to finalize the deal by fall 2025. This free trade pact is viewed as one of Britain’s most significant post-Brexit trade successes, offering enhanced market access and closer economic cooperation with one of the world’s fastest-growing economies.
A government source told The Guardian, “We are nearly there. We are as close as we’ve ever been, but conversations at the political level cut both ways.”
If successfully concluded, the UK-India Free Trade Agreement would be a landmark achievement in global trade diplomacy and could reshape trade relations between Europe and Asia.
