New Delhi: Newly appointed UK foreign secretary David Lammy will make a two-day visit to India later this week, en route to Laos for the ASEAN-UK Ministerial Meeting that will take place on 26 July, according to people familiar with the matter.
Lammy, 52, is expected to make some “positive statements” about the India-UK free trade agreement (FTA) talks during his brief stopover in Delhi, the people said. While no big announcements are expected, the significance of the visit lies in its timing — it comes within 20 days of Lammy assuming office.
This is the first major ministerial-level visit to India under the newly elected British government. The Labour Party swept elections on 4 July, ending the 14-year rule of the Conservative Party.
During the two-day visit between 23 and 24 July, Lammy is expected to meet external affairs minister S Jaishankar, commerce minister Piyush Goyal, and other top officials. He has been vocal about the need to foster strong bilateral ties with New Delhi and has, in the past, referred to Jaishankar as a “friend”.
British Prime Minister Keir Starmer spoke to his counterpart, Narendra Modi, on 13 July and said his government was committed to concluding a free trade agreement (FTA) that worked for both sides. While both sides are wary of committing to a deadline to finalise the agreement after a previous Diwali 2023 deadline lapsed, it is expected that the deal will be concluded by the end of the year.
Still, sources privy to the ongoing negotiations say there has been little to no progress on a bilateral investment treaty — a key demand from London since talks began in January 2022. The treaty would provide legal protections for British companies and individuals investing in India. The British side is also looking for a robust regulatory framework covering sustainability, labour standards, rules of origin, and other issues. A detailed chapter on e-commerce is also believed to be in the offing.
Nearly 20 chapters out of a total of 26 in the FTA have been finalised, many of which pertain to tariffs on particular products, according to a consultant who is part of the discussions. Even if the FTA is finalised within this year, it will require ratification from the UK Parliament, which could take 12-18 months.
India has been actively pursuing FTAs with various countries, having finalised deals with Australia, the UAE and the European Free Trade Association (EFTA) earlier this year. India is also in talks with the European Union (EU) for a similar agreement, and the deal with the UK is expected to act as a “role model”.
(Edited by Sanya Mathur)
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All these travels are a waste of money and resources. Neither side has what it takes to strike a free-trade deal.