The consultations still began under Prime Minister Johnson: Great Britain and India have now agreed on a free trade agreement. Customs should drop drastically – for example on whiskey, cars and clothing.
Great Britain and India have closed a far -reaching free trade agreement after a long struggle. Great Britain’s Prime Minister Keir Strander spoke of a “groundbreaking agreement”.
It provides for a drastic lowering of Indian import duties on whiskey, cosmetics, medical devices, car or aircraft parts and other goods from the United Kingdom. Customs on whiskey and gin, for example, are halved from 150 to 75 percent, and after ten years one set of 40 percent is to apply. India, on the other hand, should benefit from lower tariffs on clothing.
Expected significantly more Scotch exports
Mark Kent, CEO of the Scotch Whiskey Association Association, said that the agreement would mean revolution for the industry. India is one of the largest whiskey markets in the world. He added that the deal had “the potential to increase the Scotch Whiskey exports to India by a billion pounds over the next five years”.
According to the BBC, the trading volume of both countries was £ 41 last year. In the long term, an increase in bilateral trade is hoped for by £ 25.5 billion (around 30 billion euros) per year.
India’s Prime Minister Narendra Modi wrote on the platform X that the agreement was “ambitious and advantageous for both sides”.
Important goal for British to Brexit
Negotiations on the agreement began more than three years ago. The then Prime Minister Boris Johnson issued a success of the talks as an important goal after the UK’s exit from the European Union 2020. However, both countries ultimately led 13 rounds of negotiations without achieving a breakthrough. During the parliamentary elections in Great Britain and India in 2024, negotiations were even suspended.
The tariffs announced by US President Donald Trump have also met Great Britain, including the British auto industry. So far, the British hopes have not fulfilled their own agreement with the United States.
