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Rio -da -Zaneira, Brazil -November 18: British Prime Minister Sir Keir Starmer (L) During a bilateral meeting with Indian Prime Minister Narendra Modi, when he attended the G20 summit at the Museum of Contemporary Art on November 18, 2024 in Rio -Janeiro, Brazil. Kire Starmer has been visiting his first G20 summit since the UK Prime Minister was elected. He is expected to negotiate with President Xi Jinping from China, for the first time the UK Prime Minister has been doing so for six years. (Photo by Stefan Rousseau – WPA/Getty Images pool)
WPA pool | Getty Images | Gets the image
The UK and India reached a bilateral trade agreement on Tuesday, reducing tariffs for key exporters such as whiskey and UK cars, amid a global trade war initiated by the United States.
According to the British government, the transactions will gradually reduce import taxes from the UK, and the vast majority of goods become “completely tariff without tariffs”.
Exports from the UK, such as whiskey and gin, will see tariffs twice from 150% to 75% before cutting up to 40% over the decade in accordance with the agreement. Meanwhile, the government added the government.
The trade agreement between India and the UK comes during the growth of trade tensions worldwide. US President Donald Trump has raised tariffs worldwide, intensely with allies and opponents.
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The UK government said the agreement is expected to increase bilateral trade by £ 25.5 billion ($ 34 billion). Trade between the two countries amounted to £ 42.6 billion in 2024, which is 8.3% more than last year.
At the end of 2024, the UK had a $ 8.4 billion trading deficit with India for goods and services. The South Asian nation was the 11th largest trading partner of the country.
The first transaction was impressed by the Prime Minister of the British Prime Minister Kierre Starmer.
Business and Trade Secretary Jonathan Reynolds welcomes Indian Trade and Industry Minister Pius Goyal in London for trade negotiations.
Department of Business and Trade
“Today, we have agreed with a landmark transaction with India, one of the fastest growing economies in the world that will grow economics and deliver for the British people and business,” Starmer said in a statement.
“Strengthening our alliances and reducing trade barriers with economics around the world is part of our plan to change to provide a stronger and safer economy here at home.”
Indian Prime Minister Narendra Modi posted on X that the deal “deepen” the relations between the two countries. “In the historical milestone, India and the UK have successfully completed the ambitious and mutually beneficial free trade agreement, as well as a double contribution congress,” Modi said.
“These iconic agreements deepen our comprehensive strategic partnership and catalyze trade, investment, growth, job creation and innovation in both of our economies,” he added.
The Indian government said the UK remove all tariffs by 99.1% of imports as soon as the agreement enters into force.
In addition, New Delhi said Indian employees working in the UK will be temporarily released from national insurance up to three years, within the “Double Contribution Convention”. In the UK too have Similar agreements With South Korea, Japan and Chile.
The transaction occurs against the background of trade tensions with the United States. Both India and the UK participate in trade negotiations with Washington after President Donald Trump has introduced mutual tariffs around the world.
“Terms may not be the best if FTA increases economic stability both UK and India, providing access to new markets and reducing vulnerability to external shocks,” said Keshov R. Muruges, NYSE CEO calling WnsThe Business Transformation Company and Services operating in the US, UK and India.
“This is especially important in the world where trade tensions are increasing,” added Murugash, who is also the chairman of the Britain’s Indian Business Industry.
