Commons Sense

House of Commons · Ministerial Statement

Trade Negotiations 2025-05-06

06 May 2025 · 26 other contributors

Opened by Douglas Alexander Labour (Co-op) Lab

Summarised by AI from the official record, so it can contain mistakes.

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.

Key points

  • Government concluded negotiations on a comprehensive trade agreement with India
  • Deal will reduce tariffs and simplify customs processes for UK exporters
  • Improved copyright protection for the creative sector is included in the agreement

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.

Other contributors (26)
  • 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.

  • John Whittingdale Con 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.

  • 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.

  • Caroline Dinenage Con 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.

  • Gurinder Singh Josan Lab 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

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.

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