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The UK and India have paused talks on a trade deal until after India’s election in May, according to a Bloomberg report.
Why it matters: This delay leaves the UK with a very short window to resolve the deal before its own general election slated for the latter part of this year.
- Indian Prime Minister Narendra Modi is expected to win, but opinion polls suggest his British counterpart Rishi Sunak is likely to lose.
Driving the news: Originally scheduled to conclude in October 2022, the two nations have failed to find a breakthrough after their 14th round of talks.
- UK officials said that India had not moved enough on services and investment to secure a deal.
Catch-up quick: Sunak stressed in a call this week with Modi that the discussions had to yield “an ambitious outcome on goods and services”.
- The UK’s wishlist included lower tariffs on goods such as cars and whisky, and better access for British lawyers and financial services companies to the Indian market.
- In return, India wants easier processing for its companies to send workers to the UK and lower duties on its textile exports.
What they’re saying: “The UK and India are continuing to work towards an ambitious trade deal,” the UK Department for Business and Trade said in a statement.
- “Whilst we don’t comment on the details of live negotiations, we are clear that we will only sign a deal that is fair, balanced and ultimately in the best interests of the British people and the economy.”
Looking ahead: Sunak’s spokesperson said that the leaders “agreed to remain in close contact and looked forward to further progress on trade talks”.
