UK dangers being too tender in India commerce talks, says ex-minister

Former British prime minister Boris Johnson was warned that the UK was repeating the errors of the UK-Australia commerce deal by being too tender in its negotiations with India, in response to a letter seen by the Monetary Occasions.

The then agriculture secretary George Eustice wrote to Johnson on June 27 to complain that an inner Whitehall settlement designed to keep away from a repeat of the one-sided concessions made to Australia on meals exports had been “watered down”.

“We can not danger one other consequence comparable to Australia the place the worth of the UK agri-food market entry provide was almost double what we bought in return,” Eustice wrote after the conclusion of the fourth spherical of UK-India commerce negotiations.

His doubts emerged because the UK makes an attempt to agree a multibillion pound commerce take care of India that Rishi Sunak hailed on the sidelines of the G20 summit in Indonesia on Tuesday as a “implausible alternative” for Britain.

Hopes of an settlement in time for the Hindu pageant of Diwali final month took a success after the house secretary Suella Braverman expressed “reservations” that the deal could result in elevated immigration — drawing an indignant response from New Delhi.

In his letter Eustice warned that the Cupboard Workplace had “watered down” beforehand agreed Whitehall safeguards that might have enabled ministers from different departments to push again if the Division of Commerce made concessions they thought-about to be too deep.

On Monday Eustice, who led the agriculture division, Defra, between 2020 and 2022, took the gloss off the UK-Australia deal introduced by Johnson in December 2021 by telling MPs the settlement had given away “far an excessive amount of for much too little in return”. 

Eustice mentioned in his letter to Johnson that the UK-India deal may very well be a “enormous alternative” for UK meals exports, together with whisky, salmon and cheese, however that he had considerations after India initially provided to liberalise tariffs on solely half as many agricultural merchandise as British negotiators had put ahead.

“I’m conscious that India is a tricky negotiator however I firmly imagine the UK ought to be too,” he wrote.

Whitehall insiders confirmed that the dispute over the administration of
the India-UK negotiations had not been resolved by the point Eustice
left workplace this summer season.

Negotiations between the 2 sides are persevering with, however for the reason that departure of Johnson’s successor, Liz Truss, from Downing Avenue expectations of a fast decision has slipped, with officers on each side suggesting the brand new goal for a deal could be subsequent March.

On the G20 Summit Sunak mentioned he was wanting ahead to discussing a commerce pact with Indian prime minister Narendra Modi on Wednesday, when the 2 leaders will meet for his or her first formal bilateral assembly.

However Sunak added he wouldn’t rush right into a take care of India. “I wouldn’t sacrifice high quality for pace. And that goes for all commerce offers. It’s vital that we get them proper moderately than rush them and in order that’s the strategy I’ll tackle commerce offers.” 

Forward of the assembly, Sunak and Modi confirmed a reciprocal visa scheme that may provide 3,000 locations to 18—30 year-old degree-educated Indians a yr to return to the UK for as much as two years.

If concluded, the commerce deal could be probably the most important reached by Britain because it left the EU. India is on observe to be one of many world’s fastest-growing massive economies this yr, and the nation not too long ago overtook the UK to turn into the world’s fifth-largest economic system.

For India, the proposed FTA could be the newest in a collection of commerce pacts concluded by Modi’s authorities, however negotiators have struggled to agree the ultimate particulars.

Delicate areas embrace a push by New Delhi to safe higher visa entry to Britain for Indian IT professionals, and the UK’s need for India to open its protected providers trade to British regulation and monetary companies.

Entry to India’s spirits and automobile markets have been amongst different points broached within the talks, in addition to knowledge safety for UK-based corporations that don’t wish to fall foul of India’s more and more robust regulation of the web.

Downing Avenue mentioned it could not touch upon leaks or particulars of reside negotiations. “We are going to solely signal a deal that’s truthful, reciprocal and in the end in the very best pursuits of the British folks and the economic system,” a spokesperson added.