Both sides celebrate the historical agreement, which took several years to elaborate.
India and the United Kingdom have agreed with a trade agreement that occurs after three years of negotiations and, according to them, will boost their economies amid the consequences of US President Donald Trump’s tariffs.
The British government said on Tuesday that the agreement “should increase bilateral trade by 25.5 billion pounds [US$ 34 bilhões]the UK GDP in 4.8 billion pounds [US$ 6,4 bilhões] and salaries in 2.2 billion pounds [US$ 2,9 bilhões] each year in the long run. ”
“Indian tariffs will be reduced, ensuring reductions in 90% of tariff lines, with 85% of them becoming totally exempt from tariffs within a decade.”
British alcohol and automotive beverage industries are among the main beneficiaries, with half -reduced whiskey and GIM fares to 75% before falling to 40% in the tenth year of the agreement. Automotive tariffs will go from more than 100% to 10% under quota.
Tariffs will also be reduced on British exports, including cosmetics, medical devices, aerospace parts, lamb, salmon, chocolate and cookies.
The India Ministry of Commerce said 99% of Indian exports would not suffer import taxes according to the agreement.
“This brings us closer to our goal of becoming a global economic power. Protects our essential interests and, at the same time, opens doors to greater India participation in global value chains,” said Minister of Commerce Piyush Goyal.
The agreement introduces a “double contribution convention” that exempts Indian workers in the United Kingdom of national insurance payments for up to three years, and vice versa.
Advanced negotiations on a bilateral separate investment treaty and additional discussions on labor and environmental standards are also underway.
India Prime Minister Narendra Modi, and his British colleague Keir Stmerer, talked by telephone on Tuesday to mark the deal, and Modi invited Stmerer to visit the country.
“These historical agreements will further deepen our comprehensive strategic partnership and catalyze trade, investment, growth, job creation and innovation in both our economies,” Modi said in an X publication.
“Strengthening our alliances and reducing commercial barriers with economies around the world is part of our change plan to provide a stronger and safer economy here at home,” Stmerer said, praising what the government says is the UK’s largest trade agreement since leaving the European Union in 2020.
The two leaders are expected to meet in the coming months to sign and finish the agreement.
India has also sought to receive an exemption from the upcoming UK carbon tax-a climate policy tool that will be implemented from 2027-but authorities have no further details on their statements on Tuesday.
The agreement occurs at a time when countries around the world are pondering new strategies and negotiating trade agreements to compensate for the costs of Trump government tariffs in the United States.
Originally published by Al Jazeera on 06/05/2025
Source: https://www.ocafezinho.com/2025/05/06/india-e-reino-unido-fecham-acordo-comercial-historico-incluindo-cortes-de-tarifas/
