← Back to House of Commons Debates
Trade Negotiations 2025-05-06
06 May 2025
Lead MP
Douglas Alexander
Debate Type
Ministerial Statement
Tags
ImmigrationEconomyTaxationBrexit
Other Contributors: 26
At a Glance
Douglas Alexander raised concerns about trade negotiations 2025-05-06 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
I am delighted to inform the House that we have concluded negotiations on a comprehensive, modern agreement with India. This deal will make trade between our countries cheaper, easier and quicker from day one of its implementation. It will provide tariff reductions for UK exporters, simplified customs processes for businesses in advanced manufacturing, aerospace, food and beverage sectors, and improved copyright protection for the creative sector. The financial and professional services companies will have access to India’s fast-growing market with equal footing. This deal is expected to boost bilateral trade by £25.5 billion, increase UK wages by £2.2 billion annually, and add nearly £5 billion to our GDP over time. It protects the NHS and upholds high food standards while ensuring that our points-based immigration system remains unaffected. The deal will be scrutinised by the House before ratification, following the process set out in the Constitutional Reform and Governance Act 2010.
Harriett Baldwin
Con
West Worcestershire
Question
What concessions did the Government make that their predecessors were not willing to make to get the deal over the line? Why was there no reference to the double contribution convention in the statement or press release?
Minister reply
The agreement with India was secured through patient, pragmatic and painstaking work. The reciprocal agreement will benefit UK workers and their employers as opportunities within India expand. It covers a specific and limited group of Indian businesspeople for three years and requires them to pay an immigration health surcharge to the NHS.
Gregor Poynton
Lab
Livingston
Question
Can you say more about how this deal will help whisky and digital service businesses in Scotland?
Minister reply
I thank my hon. Friend for his question. The UK-India free trade agreement secures reduced tariffs on Scotch Whisky, which is a tangible example of the positive impacts of this deal. Additionally, it supports small and medium-sized enterprises in digital services by facilitating business mobility routes.
Clive Jones
LD
Wokingham
Question
Does the Minister agree that denying a vote on trade deals contradicts Labour policy and sets a dangerous precedent?
Minister reply
The hon. Gentleman raises an important point about the scrutiny process for trade deals. We will follow the process set out in the Constitutional Reform and Governance Act 2010, ensuring proper scrutiny of this agreement.
Barry Gardiner
Lab
Brent West
Question
Can you outline further what the benefits of the double contribution convention on national insurance will be for our workers in India?
Minister reply
The hon. Friend is correct to recognise the dynamic nature of the Indian economy and its potential mutual benefits for UK service exporters. The agreement facilitates engagement and co-operation, ensuring significant opportunities for both countries.
Maldon
Question
Will you ask Lord Mandelson to explain to the US Administration that tariffs on films are unworkable?
Minister reply
I will ensure that Lord Mandelson is fully aware of the issue raised by the right hon. Gentleman regarding film sector tariffs and their potential impact on the UK-US trading relationship.
Slough
Question
Can you confirm that this agreement will increase bilateral trade, GDP, wages, and create jobs in both nations?
Minister reply
My hon. Friend correctly highlights the economic significance of the UK-India FTA. It is expected to boost bilateral trade by about £25.5 billion, raise UK GDP, and support job creation across both countries.
Gosport
Question
Will you confirm the agreement with India on youth mobility schemes before signing one with the EU?
Minister reply
The hon. Lady raises a valid point regarding contribution agreements. We have signed double contribution conventions with Chile, Japan, and South Korea.
Sojan Joseph
Lab
Ashford
Question
Does the Minister agree that securing a deal with India, which is expected to be the third largest economy by 2028, puts UK businesses in an incredible position?
Minister reply
India's growing economy and middle-class consumers provide significant opportunities for UK businesses. The trade deal offers specific provisions for SMEs and supports advanced manufacturers, offering a degree of certainty with significant tariff reductions across sectors.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Question
What assistance will be given to British companies, especially SMEs, to ensure they can maximise the benefits of trading in India?
Minister reply
The deal offers specific provision for SMEs, recognising that accessing the huge Indian market can often be challenging. The Scotch whisky industry has expressed support for the agreement.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
Question
Could the Minister say more about how small businesses in the north-east, particularly those in digital sectors and health care, can secure and access opportunities from this deal?
Minister reply
The deal offers significant opportunities for both the digital sector and healthcare industry in a growing market. It delivers certainty with tariff reductions and affords long-term strategic investments for exporting to India.
John Lamont
Con
Berwickshire, Roxburgh and Selkirk
Question
Is it astonishing that the Minister has announced tax breaks for immigration when Labour previously introduced a tax on UK workers?
Minister reply
Scottish workers in the whisky industry are delighted by today's announcement. The deal secures significant benefits for companies like Chivas Brothers, Ballantine’s and other Scottish brands.
Smethwick
Question
How does this deal respect and enhance values related to workers' rights, human rights, consumer protections and environmental sustainability?
Minister reply
The agreement respects these values for the first time in many cases, reflecting the UK's determination to secure them as part of the negotiations.
Chris Law
SNP
Dundee Central
Question
Have the Government’s climate ambitions been sacrificed to secure this deal given recent pressure to abandon net zero ambitions?
Minister reply
The UK's climate ambitions have not been sacrificed, as carbon mechanisms were crucial in these trade negotiations with India.
Imran Hussain
Lab
Bradford East
Question
Has the persecution of Kashmiri journalists and human rights activists been raised during the negotiations?
Minister reply
The UK is committed to promoting universal human rights. Concerns are raised directly with partner Governments, including at ministerial level.
Andrew Rosindell
Con
Romford
Question
Was Brexit not the right thing to do given that it allowed us to negotiate our own free trade agreements?
Minister reply
The Commonwealth provides opportunities for strengthening and broadening trading ties. We should look forward and engage in new markets rather than old arguments.
Matt Rodda
Lab
Reading Central
Question
Will the Minister elaborate on the benefits to the UK tech sector, particularly start-ups and young entrepreneurs?
Minister reply
The deal offers huge opportunities for the tech sector, fintech, and financial services. The City of London has become a significant global tech hub.
Andrew Murrison
Con
South West Wiltshire
Question
Is the deal likely to narrow or widen the substantial trade deficit with India? What are the details of tariffs and non-tariff barriers?
Minister reply
The Indian Government will account for the deal in their terms, but we will follow the established constitutional process under the Constitutional Reform and Governance Act 2010. The House will have an opportunity to scrutinise the agreement's details.
John Slinger
Lab
Rugby
Question
How will this deal deliver growth, economic development, and innovation for businesses across the country?
Minister reply
The agreement opens opportunities for UK manufacturing excellence, including reducing tariffs on automotive exports to India from over 100% to 10%, providing a competitive edge in accessing the Indian market's growing middle class.
Jim Allister
TUV
North Antrim
Question
How does this trade deal affect Northern Ireland under EU trade laws?
Minister reply
Northern Ireland’s trading relationships and status within the UK are not altered by this agreement. The protocol and Windsor framework maintain peace in Northern Ireland, unaffected by today's agreement.
Torcuil Crichton
Lab
Na h-Eileanan an Iar
Question
How will the deal benefit whisky producers, crofters, salmon farmers, and other sectors in Scotland?
Minister reply
The agreement includes zero tariffs for Scottish food products like lamb and salmon. It also benefits whisky producers with Glenkinchie whisky cited as an example of significant material benefits to the UK economy.
Nick Timothy
Con
West Suffolk
Question
Does this agreement make Indian migrant workers cheaper to employ in Britain than they are today?
Minister reply
The points-based immigration system is not affected by this deal. Business mobility routes have been expanded for highly skilled and experienced professionals, but no new visa schemes or routes have been created.
Alex Ballinger
Lab
Halesowen
Question
How will the automotive sector in the West Midlands benefit from this deal?
Minister reply
Automotive companies will now sell to India with tariffs under a quota reduced from over 100% to 10%. The agreement includes quotas to limit duty-free imports, giving UK businesses a competitive edge and increased access to India’s growing middle class.
Jim Shannon
DUP
Strangford
Question
What are the opportunities for the Northern Ireland film industry under this trade deal?
Minister reply
The agreement recognises the economic opportunity for the film sector in Northern Ireland, noting its skilled workforce and picturesque scenery. Significant parts of 'The Crown' were filmed there.
Andrew Lewin
Lab
Welwyn Hatfield
Question
How will this deal impact visa schemes that encourage Indian students to study in the UK?
Minister reply
While specific details on visa schemes are not provided, the Minister acknowledges the importance of encouraging Indian students to continue studying at institutions like the University of Hertfordshire.
Katrina Murray
Lab
Cumbernauld and Kirkintilloch
Question
AG Barr, which has iconic brands such as Irn-Bru and Rubicon, is based in my Cumbernauld and Kirkintilloch constituency. What will the trade deal mean for soft drinks companies such as Barr?
Minister reply
I hesitate to say, “What’s it called? Cumbernauld!” Whether for Scottish salmon, Scottish whisky or perhaps the most iconic Scottish product of all, Irn-Bru, this India-UK trade deal is good news. When I was being briefed by officials shortly before coming to the House, I asked for examples of the sectors in which we would see the biggest benefits, and my hon. Friend will be delighted to hear that Irn-Bru featured prominently in the description given.
Shadow Comment
Dame Harriett Baldwin
Shadow Comment
This deal marks a landmark moment for UK’s global trading relationships. However, it is shocking that the Minister did not acknowledge the role of Brexit freedoms in securing the deal. The shadow minister raised several questions regarding concessions made to secure the deal, the double contribution convention between India and the UK, its cost implications on British workers, national insurance contributions exemptions, and potential impact on Indian millionaires fleeing the UK for tax reasons. She also questioned the fairness of the agreement for both parties and expressed concern over subsidising Indian labour while undercutting British workers.
▸
Assessment & feedback
Summary accuracy
About House of Commons Debates
House of Commons debates take place in the main chamber of the House of Commons. These debates cover a wide range of topics including government policy, legislation, and current affairs. MPs from all parties can participate, question ministers, and hold the government accountable for its decisions.