UK Parliament to Scrutinize UK-India Free Trade Agreement Impact

London, Sep 12 (PTI) – A British parliamentary panel is set to examine the consequences and significance of the UK-India Free Trade Agreement (FTA), which was finalized during Prime Minister Narendra Modi’s visit in July. This week, an inquiry was initiated by a cross-party panel of the House of Lords International Agreements Committee. This panel includes British Indian Conservative peer Baroness Sandy Verma, and they are currently seeking input from experts and stakeholders as part of the parliamentary process before the Comprehensive Economic and Trade Agreement (CETA) can be implemented.

The agreement aims to double bilateral trade to USD 120 billion by 2030. It has been heralded by Prime Minister Keir Starmer's government as a “landmark agreement” which is expected to increase trade by 25.5 billion pounds and boost the UK GDP by 4.8 billion pounds annually in the long term.

“As we embark on a new programme of evidence gathering, covering the terms of the FTA, its potential benefits and drawbacks, and provisions for key UK sectors, we encourage individuals with experience or expertise in this area to come forward and share their perspectives,” stated Lord Peter Goldsmith, chair of the International Agreements Committee.

This development comes as Prime Minister Starmer prepares for his inaugural visit to India next month, where he will join Modi at the Global Fintech Fest (GFF) scheduled for October 7-9.

The House of Lords committee is seeking evidence on several key aspects, including: the potential benefits and risks of the FTA for the UK; how the agreement will impact different sectors across the UK; its effect on UK consumers; broader economic, social, and environmental repercussions; its interaction with the UK’s trade and industrial strategies; implications for UK-India relations; and the wider geopolitical context of the agreement.

The deadline for written submissions as part of the public call is October 14. The committee is eager to hear from a diverse range of individuals and organizations.

Following this, a selected group of individuals and trade representatives will be invited to present oral evidence on specific topics before the committee.

The House of Lords International Agreements Committee is responsible for scrutinizing all treaties laid before Parliament under the UK’s Constitutional Reform and Governance Act. Their inquiries culminate in the publication of a report that is tabled in Parliament as part of the treaty ratification process.

Earlier this month, Jonathan Reynolds, the former UK Business and Trade Secretary who signed the deal with Commerce Minister Piyush Goyal, triggered the parliamentary process with a statement in the House of Commons.

“This agreement reduces the average Indian tariff on UK products from 15 percent to 3 percent, with tariff duties dropping by approximately 400 million pounds upon entry into force, eventually rising to 900 million pounds,” Reynolds informed the MPs. He added, “The agreement secures unprecedented preferential access to India’s federal procurement market, guarantees market access for UK service providers, and makes trade quicker, cheaper, and easier through improved customs and digital processes.”

Reynolds also mentioned, “As India continues to grow, so will the opportunities for the UK, granting businesses a competitive advantage with the fastest-growing economy in the G20.” With a recent Cabinet reshuffle, Peter Kyle will take the CETA ratification process forward as the newly appointed Business and Trade Secretary.

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