Former British prime minister Boris Johnson was warned that the UK was repeating the errors of the UK-Australia commerce deal by being too delicate in its negotiations with India, in keeping with a letter seen by the Monetary Instances.
The then agriculture secretary George Eustice wrote to Johnson on June 27 to complain that an inside Whitehall settlement designed to keep away from a repeat of the one-sided concessions made to Australia on meals exports had been “watered down”.
“We can not threat one other end result similar to Australia the place the worth of the UK agri-food market entry supply was almost double what we obtained in return,” Eustice wrote after the conclusion of the fourth spherical of UK-India commerce negotiations.
His doubts emerged because the UK makes an attempt to agree a multibillion-pound trade deal with India that Prime Minister Rishi Sunak hailed on the sidelines of the G20 summit in Indonesia on Tuesday as a “implausible alternative” for Britain.
Hopes of an settlement in time for the Hindu pageant of Diwali final month took a success after the house secretary Suella Braverman expressed “reservations” that the deal could result in elevated immigration — drawing an offended response from New Delhi.
In his letter Eustice warned that the Cupboard Workplace had “watered down” beforehand agreed Whitehall safeguards that may have enabled ministers from different departments to push again if the Division of Commerce made concessions they thought-about to be too deep.
On Monday Eustice, who led the agriculture division between 2020 and 2022, took the gloss off the UK-Australia deal introduced by Johnson in December 2021 by telling MPs the settlement had given away “far an excessive amount of for a lot too little in return”.
Eustice mentioned in his letter to Johnson that the UK-India deal might be a “enormous alternative” for UK meals exports, together with whisky, salmon and cheese, however that he had considerations after India initially supplied to liberalise tariffs on solely half as many agricultural merchandise as British negotiators had put ahead.
“I’m conscious that India is a troublesome negotiator however I firmly consider the UK ought to be too,” he wrote.
Whitehall insiders confirmed that the dispute over the administration of the UK-India negotiations had not been resolved by the point Eustice left workplace this summer season.
Negotiations between the 2 sides are persevering with, however for the reason that departure of Johnson’s successor, Liz Truss, from Downing Avenue expectations of a fast decision have slipped, with officers on each side suggesting the brand new goal for a deal can be subsequent March.
On the G20 summit Sunak mentioned he was wanting ahead to discussing a trade pact with Indian prime minister Narendra Modi on Wednesday, when the 2 leaders will meet for his or her first formal bilateral assembly.
However Sunak added he wouldn’t rush right into a take care of India. “I wouldn’t sacrifice high quality for velocity. And that goes for all commerce offers. It’s essential that we get them proper fairly than rush them and in order that’s the strategy I’ll tackle commerce offers.”
Forward of the assembly, Sunak and Modi confirmed a visa scheme that can supply 3,000 locations a yr to degree-educated Indians aged between 18 and 30 to reside and work within the UK for as much as two years. The scheme shall be reciprocal.
If concluded, the commerce deal can be probably the most vital reached by Britain because it left the EU. India is on observe to be one of many world’s fastest-growing massive economies this yr, and the nation lately overtook the UK to turn into the world’s fifth-largest financial system.
For India, the proposed settlement can be the most recent in a collection of commerce pacts concluded by Modi’s authorities, however negotiators have struggled to agree on the ultimate particulars.
Delicate areas embody a push by New Delhi to safe higher visa entry to Britain for Indian IT professionals, and the UK’s want for India to open its protected companies business to British legislation and monetary teams.
Entry to India’s spirits and automotive markets have been amongst different points broached within the talks, in addition to information safety for UK-based corporations that don’t need to fall foul of India’s more and more robust regulation of the web.
Downing Avenue mentioned it will not touch upon leaks or particulars of reside negotiations. “We’ll solely signal a deal that’s truthful, reciprocal and finally in one of the best pursuits of the British individuals and the financial system,” a spokesperson mentioned.
