In the labyrinth of trade negotiations, the prospect of finalizing a deal with India before their impending general election looms as a plausible scenario, according to the insights shared by the UK Secretary of State for Business and Trade, Kemi Badenoch. However, she adamantly expresses her reluctance to tether the negotiation process to the electoral timeline, emphasizing a commitment to substantive commercial value over a mere pre-election spectacle.

At a Global Trade conference hosted by the venerable think tank Chatham House, Badenoch, the steward of the ongoing 14th round of discussions for the Free Trade Agreement (FTA), highlighted the protracted nature of the talks. She attributed the extended deliberations to the dichotomy between India’s “protectionist economy” and the UK’s more liberalized framework.

Badenoch articulated her stance, asserting, “India remains staunchly protectionist, whereas our stance is markedly liberalized.” She disavowed any interest in a superficial agreement tailored for electoral optics, underscoring the necessity for a deal with palpable commercial significance. “It should resonate in a manner that enables individuals to affirmatively say, ‘Now I can engage in this endeavor,'” she added, drawing parallels with the FTAs established with Australia and Japan.

Regarding the timeline for concluding negotiations with India, Badenoch acknowledged the potential for a pre-election signing but staunchly rejected the imposition of electoral deadlines. “While signing before the Indian election is feasible, I refrain from constraining the negotiation process with arbitrary deadlines. Trade negotiations must evolve organically, devoid of the pressure induced by looming electoral events,” she asserted.

The backdrop of the FTA negotiations between India and the UK dates back to January 2022, with the aim of elevating their bilateral trading partnership valued at GBP 36 billion. The 13th round concluded in December of the preceding year, fostering optimism that the ongoing 14th round could culminate in a mutually agreeable accord.

The UK’s aspirations in the negotiations center on substantial reductions in Indian tariffs on exports such as food, automobiles, and whisky, some of which currently face prohibitive tariffs reaching 150 percent. Conversely, India expresses reservations about the fairness of rules governing Indian workers temporarily posted in the UK on business visas, necessitating national insurance payments without eligibility for UK pensions or social security benefits.

In her keynote address at the trade conference, Badenoch elucidated the delicate equilibrium she seeks to strike—facilitating the import of goods from developing countries for growth while upholding the high standards of quality and safety expected by the British populace. She emphasized the role of free trade agreements in enabling strategic choices for diversification and resilience, underscoring the essence of the Indo-Pacific tilt.

With both India and the UK poised for general elections in the upcoming year, the urgency to finalize the trade agreement intensifies, with leaders on both sides navigating the intricate balance between diplomatic negotiations and electoral imperatives.