Commons Sense

House of Commons · Westminster Hall

India-UK Trade Negotiations

22 February 2022 · 10 other contributors · 12,507 words

Opened by Bob Blackman Con Harrow East

Responding minister: Ranil Jayawardena

Business & TradeNHS

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

Read the full transcript on Parliament.uk

At a glance

Bob Blackman raised concerns about india-uk trade negotiations in Westminster Hall. A government minister responded.

Key points

  • MP highlights the importance of maintaining high environmental standards and protecting the NHS in UK-India trade negotiations.
  • MP raises concerns about the arbitrary detention of a constituent in India and questions the prioritization of trade deals over individual wellbeing.
  • MP asks the Government to update the House on the progress of negotiations and to emphasize opportunities for sectors like Scotch whisky, legal services, and renewable energy.

Key requests to Government

The MP asks the Government to update the House on the progress of negotiations and their ambition to conclude them by the end of the year. He also looks forward to the Minister highlighting the opportunities for various sectors, including Scotch whisky, legal services, and renewable energy. I ask the UK government to justify why Jagtar Singh Johal's detention is not considered arbitrary and to reconsider pursuing free trade deals at any price, especially if it compromises the wellbeing of individual UK citizens like Jagtar.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Bob Blackman Con Harrow East

The MP is concerned about the opportunities and challenges presented by the ongoing trade negotiations between India and the UK. He highlights the importance of maintaining high environmental standards, protecting the NHS, and ensuring that a free trade agreement works for both countries. The MP also mentions the potential for increased exports to £16.7 billion by 2035, the doubling of India's middle class from 30 million in 2019 to 60 million by 2030, and the current tariffs paid on UK exports to India totalling £49 million a year. I am concerned about the detention of my constituent Jagtar Singh Johal in a maximum security prison in India, following what he alleges was torture and arbitrary detention. The integrated review acknowledges the need to protect open societies and democratic values where they are being undermined, but I question whether these values are upheld when dealing with such cases.

Other contributors (10)
  • David Linden Lab Glasgow East

    Will the hon. Gentleman give way? I am grateful to the hon. Gentleman for giving way. I think he has given me this opportunity before gets himself into a bit of a hole. First, he had a pop at independence, only to then turn it into saying how successful Ireland is. Mr Linden highlighted the high tariffs imposed on Scotch whisky in India, which currently stands at 150%, and argued that reducing this tariff could significantly boost exports and job creation. He pointed out that despite only accounting for 2% of India's whisky market, Scottish whisky sales have grown from £60 million to over £150 million between 2011 and 2019. He emphasised the potential economic benefits, including a possible increase in single malt exports by £1.2 billion and creation of up to 1,300 jobs.

  • Drew Hendry SNP Inverness N & Ross

    Mr Hendry highlighted the importance of not sacrificing standards in trade agreements with India, particularly concerning the NHS and investor-state dispute mechanisms. He raised concerns about poverty levels and worker exploitation in India. Mr Hendry also addressed human rights issues such as Jagtar Singh Johal's case and the filing of criminal charges against those critical of the Indian Government. He questioned whether the Minister would uphold human rights criteria similar to EU agreements with Turkey, Singapore, and Vietnam.

  • Gareth Thomas Lab Co-op Harrow West

    The MP welcomed the opportunity for scrutiny of trade agreements, highlighting the need to improve environmental and animal welfare standards. He expressed concern over a perceived lack of ambition in negotiating a comprehensive free trade agreement with India, noting underwhelming export growth figures compared to other countries. The MP called for a strategy to boost exports and questioned the support provided to firms looking to expand into Indian markets.

  • Jim Shannon DUP Strangford

    Northern Irish! The MP highlighted the importance of including human rights provisions in future trade deals with India, particularly concerning freedom of religion or belief. He expressed concern over escalating violations against religious minorities and called for robust monitoring mechanisms to be included in negotiations.

  • Mark Garnier Con Wyre Forest

    My hon. Friend is making a strong point about how reducing barriers to entry will increase trading opportunities with India. Does he agree, however, that it is the job of the Department for International Trade to do not only trade policy but trade promotion?

  • Martin Docherty

    Questions whether the UK's inability to secure a trade deal with India while in the EU, due to issues such as whisky tariffs and visa policies, reflects a desire for cheaper labour from Indian workers now that access to European labour is reduced. Questions the meaning of shared values when a UK citizen born in this country, holding a full UK passport, can be arbitrarily detained by an ally.

  • Navendu Mishra Lab Stockport

    Congratulates the hon. Member for Harrow East on securing the debate and highlights the importance of the Manchester India Partnership in fostering academic, business, and public sector collaborations between Greater Manchester and India. Advocates for increased air connectivity between Manchester airport and major Indian cities to boost trade and ease travel for families, businesses, and students. Criticizes the government's lack of support for international students during the pandemic. Calls for better student support provisions in future pandemics or lockdowns. Discusses the potential for UK-India collaboration on climate change initiatives and green technology. Expresses disappointment with the government's opposition to a TRIPS waiver proposal aimed at enabling low-income countries to produce vaccines during the pandemic. The UK can be a world leader in green technology and renewable energy, with free trade agreements encouraging other nations to sign up to principles of renewable energy. The agreements should also increase industrial capacity in the UK for well-paid unionised jobs. The Times of London reports that UK companies exported pesticides containing 12,240 tonnes of seven chemicals banned in the UK. The speaker argues this practice is morally wrong and highlights government double standards on exports. Requests for the Minister to give way and address a question.

  • Theresa Villiers Con Down South

    Does my hon. Friend agree that one of the significant benefits of a free trade agreement between India and the United Kingdom is access to a market that is increasingly prosperous? Over recent years, millions of people in India have been lifted out of poverty because of economic growth and prosperity.

  • Valerie Vaz Lab Walsall and Bloxwich

    I take issue with one or two of the points that the hon. Gentleman has made. He spoke cleverly about what the UK can do for India, when the reality is clearly the reverse: we have imported fantastic, highly educated doctors, nurses and IT people.

  • Virendra Sharma Lab Ealing, Southall

    Sharma highlighted the historical ties between India and Britain, emphasizing mutual benefits in areas like education, legal services, defence, security, space, cyber, and aviation. He noted that despite past opportunities missed, British universities remain popular among Indian students due to their quality. Sharma urged for a sector-specific deal focused on education and legal services as part of the push towards a free trade agreement (FTA) with India.

Government Response

Ranil Jayawardena

It is a pleasure to serve under your chairmanship, Mr Davies. I thank my hon. Friend the Member for Harrow East (Bob Blackman) for raising this important topic and for sharing his passionate belief in the importance of closer ties between Britain and India. The Government fundamentally believe in the power of free trade and free markets as unrivalled forces for good in the world, which is why we are pulling out all the stops to champion this cause globally. We have signed deals with 70 countries plus the EU, covering trade worth £772 billion in 2020. The free trade agreement being negotiated with India promises to be a game changer, opening the door for British businesses to a vast market of almost 1.4 billion people and is expected to boost Britain's GDP by up to £6 billion by 2035. Major restrictions such as high tariffs still hold us back, but an ambitious deal could give British businesses a first-mover advantage over American and European firms in India. The trade deal has the potential to benefit SMEs, which account for 80% of British trade in goods to India in 2020, by cutting red tape and reducing administrative burdens. This deal will help define the future for global Britain and lay the foundation of our trade relationship with one of our strongest and most important global partners.

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