India and the United Kingdom will continue to negotiate a bilateral free trade agreement, Boris Johnson and Indian Prime Minister Narendra Modi said after the United Kingdom made it clear it was ready to make immigration part of any deal.
The couple seems to differ on how quickly an agreement can be reached – Johnson speculated that it could be ready for the Diwali Festival in late October, but Modi indicated the end of the year.
Johnson said: “As the next round of talks begins here next week, we are telling our negotiators to do so by Diwali in October.
Modi said there was good progress and we decided to make every effort to conclude the FTA [free trade agreement] by the end of this year”. Three rounds of negotiations have already taken place.
Johnson and Modi spoke together at Hyderabad House in Delhi, where they held bilateral talks as Johnson’s two-day visit to India ends.
Downing Street had hoped the trip would demonstrate the prime minister’s determination to focus on investment, jobs and security, but it was overshadowed by events at home.
On Thursday, Johnson’s allies failed to prevent lawmakers from backing an investigation into whether he misled Parliament on Partygate, and Senior MP Steve Baker, a former supporter of Johnson, joined the ranks calling for him to leave.
India wanted to make increased access to the UK for its citizens part of every trade deal, and Johnson signaled on Thursday that he was ready to make concessions in the area – something the previous UK governments have refused to do.
Asked if he was ready to offer more visas as part of the deal, he told ITV: “The UK actually has a huge shortage in some sectors such as IT. Some estimates say we are missing hundreds of thousands of people. So what you can have is controlled migration, which allows you to attract talented people who can really help your economy.
He added: “We will not give these things lightly – we want to be sure that we will make the right deal. There is room for a fantastic deal. ” The United Kingdom hopes that its car industry and food and beverage producers can benefit if tariffs are reduced through a deal.
The government is under pressure to make further trade deals, with the expected post-Brexit deal with Washington in the background as US President Joe Biden focuses on other issues.
Johnson vowed to raise difficult issues with Modi, including India’s ambivalent stance on Ukraine – although Johnson said on the way to India that it was important to recognize the country’s longstanding relationship with Russia.
Speaking with Johnson, Modi called for an “immediate ceasefire” in Ukraine and stressed the importance of diplomacy, but did not criticize Russia, which is India’s largest arms supplier.
India has refrained from consistent UN proposals condemning Russia and continues to buy oil from Moscow.
Russian Foreign Minister Sergei Lavrov met with Modi in Delhi earlier this month and insisted that the two countries would continue to find ways to trade, despite Western sanctions against Russia.
The United Kingdom announced during Johnson’s visit that it would liberalize arms exports to India as the two countries deepen their defense co-operation. The government will issue an open common export license to India, which will mean that no separate licenses are needed for individual contracts.
Add Comment