The new UK Global Tariff, that will replace the EU’s common external tariffs as the Brexit transition process ends on December 31, will be twice as beneficial for Indian exports than the EU’s existing rules, Elizabeth Truss, UK Secretary of State for International Trade has said.
Speaking at a virtual session on ‘post-Brexit UK and India’ at the CII Summit on Thursday, Truss said that she and Commerce & Industry Minister Piyush Goyal will have to work with the industry on the ‘Enhanced Trade Partnership’ before the visit of UK Prime Minister Boris Johnson to India for the Republic Day celebration next month so that there was something significant for the two PMs to present.
Future roadmap
“Minister Goyal and I have been working on an ETP as part of a roadmap that will lead to a future Free Trade Agreement...The PM’s visit gives us a deadline. I am sure Minister Goyal and I would be working very hard over the Christmas and New Year period,” she said.
GoyaI, in his address, hoped that the early harvest proposition of India, within the framework of a larger FTA, would be accepted by the UK, which would help the countries grab the low hanging fruits.
“We are looking at possibilities of trade in goods and services and investments being a part of our enhanced trade partnership. We are looking at an option to see if it can be converted into an early harvest agreement”, he added.
UK Global Tariff
Commenting on the new UK Global Tariff, Truss said that it had been already placed before her country’s Parliament and, once implemented, would greatly benefit Indian exporters. Truss added that the UK’s improved immigration standards and new point based immigration system coming in place in 2021 will make it easier for skilled workers from India to migrate to the UK for work purposes.
“Through these measures, India continues to benefit from UK actions. We look forward to greater access to Indian markets for the UK too,” she said.
There are so many areas where India and the UK can work on, such as food and drinks, pharmaceuticals, data and digital advanced manufacturing, she said.
Agreeing with Truss, Goyal said that the two sides had agreed to work together in many sectors like education, health, environment, easier movement of people, large investment flows, that held great promise for both.