- Monday, July 08, 2024
The Labour Party has in the recent past questioned the Conservatives’ delay in giving the free-trade agreement with India a final shape.
By: Shubham Ghosh
THE process of negotiation over the free-trade agreement (FTA) between India and the UK has been going on for some time to boost their bilateral trade. However, the Conservative Party has left the task unfinished now with the Labour ousting them in the just concluded general election in the UK and the dynamic of the negotiations could now see a change.
The UK, which has seen five prime ministers since the historic Brexit referendum was conducted in June 2016, did not have the right kind of political ambience required for the deal with India to materialise.
Elections in both countries also hindered the momentum and now with the Labour coming to power with a comfortable mandate and Narendra Modi continuing as the prime minister of India after securing a win in the general elections a month ago, the FTA might get a decisive push.
Since Brexit, most of the trade deals that the UK has signed have been rollover ones, resembling agreements that London had when it was a part of the European Union.
Read: Labour back in power after 14 years; Starmer is next UK PM
The current Labour Party under Keir Starmer, set to become the next prime minister, is a completely different one compared to that under his predecessor Jeremy Corbyn, who had taken a stance on Kashmir that did not please India. Starmer was seen wooing the people of Indian origin and even visited Hindu temples.
He understands the growing political clout of the Indian-origin people in the UK, the biggest immigrant group in the country, and has also tried to weed out ‘anti-India sentiments’ within the Labour Party.
In an event last week, Labour chair Anneliese Dodds said under Starmer, the party is confident of having removed members with “extremist views” on India.
Read: UK’s ties with Modi’s India may see ‘acche din’ if Labour wins July 4 election
The Labour has also questioned the Conservatives’ delay in giving the FTA with India a final shape. Last month, the party’s David Lammy slammed the Tories and appeared to take a dig at former premier Boris Johnson for failing to close the long-awaited agreement.
Speaking at the India Global Forum in London, Lammy, who is the Labour’s shadow foreign secretary and is expected to succeed David Cameron as the foreign secretary, said, “Many Diwalis have come and gone without a trade deal and too many businesses have been left waiting.”
His remark was in reference to the Diwali 2022 deadline set by Johnson for the FTA with India, which was missed.
However, immigration could remain a sticking point for the India-UK trade deal. While Tories and Labour have different takes on how immigration into the UK should be restricted, there is a consensus that it must be done. Immigration is a highly debated issue in British politics and it is to be seen how things go under the Starmer administration.
India is also seeking temporary visas for its service sector workforce under the deal with the UK. The south Asian nation could benefit from the integration given the fact that the UK is a powerhouse in information technology and financial services segment. Here too, the Labour negotiation is to be seen.
