UK-India Sign Free Trade Agreement, Import Tariff Drops Drastically

British Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi/PHOTO via Instagram @10downingstreet

JAKARTA - Britain and India signed an important Free Trade Agreement (FTA) agreement, with British Prime Minister Keir Starmer praising the deal as a "historic day" and a "big win for Britain."

Speaking after the FTA signing ceremony, Starmer said the agreement would increase employment, expand business opportunities, and encourage growth across the UK.

"Our important trade agreement with India is a big win for Britain. This agreement will create thousands of jobs across the UK, open up new opportunities for businesses, and encourage growth in every corner of the country, realizing our Plan for Change," he said as quoted by ANTARA from Anadolu, Thursday, July 24.

"We are giving more money to British citizens who are working hard and helping families in living expenses, and we are determined to go further and faster in growing the economy and increasing living standards across the UK," he said.

Indian Prime Minister Narendra Modi called Britain and India a "natural partnership" and said the two countries were "writing a new chapter" in a shared history.

Under the terms of the agreement, India's average tariff for British goods will drop from 15 percent to 3 percent.

British product exports, ranging from light drinks and cosmetics to cars and medical devices, are expected to benefit significantly from increasing access to the Indian market.

whiskey producers are among the biggest winners. UK whiskey rates will soon be cut from 150 percent to 75 percent, and then reduced again to 40 percent over the next decade, providing British distillers with substantial benefits over global competitors.

According to a British government statement, the deal would create nearly 6 billion (Rp132.3 trillion) in new investments and export profits, creating more than 2,200 jobs across the country.

The creation of jobs is in line with Indian companies expanding operations in the UK and British companies securing new businesses in India.

Along with the trade deal, the two countries have signed an updated comprehensive and strategic partnership, paving the way for closer cooperation in defense, education, climate, technology and innovation.

Britain and India have also pledged to increase cooperation in law enforcement, including a new focus on countering corruption, organized crimes, serious fraud, and illegal migration.

The plan includes finalizing a criminal record sharing agreement to strengthen joint efforts in enforcing travel bans and maintaining an accurate watch list.