Welcome India trade deal no substitute for closer EU ties

Campaigners have welcomed confirmation that the UK Government has signed a new bilateral trade deal with India but have highlighted the need to remove trade barriers with the EU.

Despite Boris Johnson claiming in 2022 that he would have the deal "done by Diwali" the agreement was sealed by the new government after weeks of intense negotiations.

While details are yet to emerge, the government has claimed the deal would 'increase bilateral trade by £25.5 billion, UK GDP by £4.8 billion and wages by £2.2 billion each year in the long run'.

While welcoming the achievement, campaigners have highlighted that these suggested outcomes fall well short of the benefits of deepening trade ties with the EU.

Independent econometric research undertaken by Frontier Economics projects that beneficial regulatory alignment with the EU on goods and services could growth of up to 2.2% with the greatest impact felt in the Midlands and North.

Naomi Smith, Chief Executive of Best for Britain which campaigns for closer EU-UK ties said, 

“While welcome, this deal is no substitute for removing technical barriers to trade with our largest and closest market which can deliver 20 times the economic boost and cut supermarket prices for consumers. 

“The government is right to pursue better trade terms with other nations but our polling shows voters expect their priority to be securing a common sense deal with the EU.”