I can’t imagine there are many in business who aren’t sick of the word ‘Brexit’ – but please, indulge me. Since the UK’s decision to leave the EU, there is no doubt doing business internationally has suffered significant setbacks, thanks to problematic policies, processes and procedures that have added complexity, time and cost.
Yet we know trading overseas is where we can find growth, while also enabling growth for partners overseas operating in the UK. The astonishing amount of red tape and a desperate lack of clarity around trading across borders hinders everyone.
It’s no great surprise, then, that I was delighted to see the work carried out by Harjinder Kang, trade commissioner for South Asia and British deputy high commissioner to western India, in the British government’s trade deal with India.
After four years of hard work, the deal marks a genuine milestone in the history of UK-India trade. And, as India looks set to become the third-largest economy by 2028, it is quite right that we form a global partnership in order to boost growth across the UK.
Currently, bilateral trade between the UK and India is £43bn. According to Kang, this deal will further increase that figure by more than £25bn, supporting thousands of jobs in both countries. For the UK, this looks likely to be an increase of around £4.8bn. Not a huge amount, but certainly not pocket change.
The deal will reduce tariffs on UK exports to India such as cars and whisky, which will help to offset potential hard-hitting US tariffs. For consumers, it should result in cheaper prices and more choice – a win-win in anyone’s book, surely?
While there is much to celebrate with this trade deal, it also shows what we are missing elsewhere. As the UK-India trade deal also delivers clear, transparent and reliable customs procedures, timescales and commitments, it shines a light on the lack of clarity in our trade with our countries, which is inhibiting our growth as a nation.
The UK currently has 39 trade agreements in place with 73 partners, but the UK-India deal is only the fourth new trade agreement signed since Brexit. There is much more to do. To support our growth, the UK must be seen as a favourable trade partner, to encourage others to agree to terms that work for all parties. Let’s all shout about Brand Britain and make global business a reality once again.
Dr Jason Wouhra, CEO of Lioncroft Wholesale
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