The much-awaited significant FTA (Free Trade Agreement) deal between India and the UK is now falling into pieces as per the reports. The recent remarks made by Britain Home Secretary Suella Braverman over Indian visa overstayers is the reason considered behind the countries holding back the deal which was likely to get penned down by this year’s Diwali.
The sources further revealed that the comment by the UK Home Secretary angered and disturbed Indian diplomats and government officials, abdating the signing chances of the deal. No official statement either by the Indian or UK government arrived yet on the rumours concerning the matter.
On the other hand, the recent statement of the UK Secretary for International Trade Kemi Badernoch also hinted at the direction of the delay of the FTA agreement. She stated, “I am not in the rush to sign trade deals. I want good deals with these countries. We need to make sure that every deal is great for the United Kingdom”.
Remarks made by Braverman on Indian immigrants
“I have concerns about having an open borders migration policy with India because I do not think that’s what people voted for with Brexit. We even reached an agreement with the Indian government previous year to encourage as well as facilitate better cooperation in this regard. It has not necessarily worked very well”, stated the British government official.
Braverman cited the above comments in conversation with a weekly news magazine, The Spectator. The official data of 2021 notes, Indians hold the highest (10%) number among the other immigrants residing in the British state.
Britain Home Secretary’s statement made obvious her fear and concern about the long-withstanding immigrants issue between both the countries. Uk believes that the Indians visit the British state with the intention of permanently residing there and that the number of Indian visa stayers at least must match the number of Indian citizens going back to the country.
Let’s understand the depth of issue and Braverman’s statement
The United Kingdom joined the European Union in 1973, after which Britain witnessed a significant hike in the number of immigrants arriving from the EU member states. This raises the alarm in UK citizens and government, especially in terms of providing employment and eventually in 2016, UK Brexit from the international organisation. (Brexit is a term referring to Britain’s withdrawal from the EU).
Due to the highest number of Indians already residing in the United Kingdom, it caused a sense of fear of the same situation the British nation went through earlier. Braverman’s statement clearly shows fear of more Indians coming to the UK and setting for permanent residence.
The negotiation conversation on the FTA deal started in 2022 under the then UK Prime Minister Boris Johnson, who himself set the deadline to close the deal.
Understand FTA and its’ importance for India-UK
What is FTA?
FTA is a pact signed between two or more nations with the motive to reduce the barriers to import as well exports between them. In simpler terms, no import tariffs or quotas on products from one state entering the another.
Why is it important?
The FTA agreement will reduce the tariffs as well as non-tariff barriers on industry and manufacturing, leading to ease of trade between India-UK. It is to be noted that the bilateral trade between the United Kingdom and India, rised to $17.5 billion during 2021-2022, which previously stood at $13.2 billion. The deal could also assist India in getting into an FTA agreement with the European Union.
Not only this, but the deal will further save the current British economy from going into recession and a pathway to strengthen diplomatic ties between India-UK. This deal could be India’s biggest and most ambitious free trade agreement, according to Bloomberg.
Many believe that if the UK backsteps from the deal now, it will be a backstab for India.
Still an official statement is awaited on the matter by the Indian government officials, putting light on whether or not the deal will be signed.
