On 3rd September Shadow Trade Minister took to the floor of the Commons to bring to attention that the UK is falling behind all other G7 nations in securing trade in goods with India.
According to figures from the House of Common’s Library, whilst the UK has increased trade in services with India by 10% over the past 5 years it has only managed a 5% increase in trade in goods over the same period.
The disappointing figures, revealed by Gareth Thomas MP at the House of Commons, show that other developed nations of the G7 have seen their trade in goods with India, one of the world’s fastest growing economies, increase between 15% and 42%.
To increase the UK’s goods trade with India the Foreign Affairs Committee recommended, in its report ‘Reawakening Ties With India’, that “the Government should appoint a high-level and long-term dedicated trade envoy to India, with experience of the country’s business environment.” However, the UK Government is yet to take head of the report’s recommendation and the UK does not currently have a Trade Envoy to India.
The Foreign Affairs Committee report, which was published in June last year, cited that the Government should “prioritise trade talks with India” and work on removing barriers to trade such as limits on the movement of people which “are a major constraint on UK-India ties.”
Mr Thomas said, “‘It’s extraordinary that Ministers are so complacent about British trade with one of the biggest emerging markets in the world. Other G7 countries are prioritising helping their businesses win contracts in India and have seen huge leaps in levels of trade. Ministerial inaction is holding Britain back and they should prioritise trade with the Indian subcontinent to help create more of the jobs our country desperately needs.
Responding to the Mr. Thomas, the parliamentary under-secretary of state for international trade, Ranil Jayawardena said, “My Department continues to promote increased trade with the subcontinent. My right hon. Friend the Secretary of State and I recently took part in the 14th annual UK-India JETCO—Joint Economic Trade Committee—during which we set a more ambitious trajectory for an enhanced trade partnership. Through our independent trade preferences scheme, we are strengthening our trading relationships with Sri Lanka and Bangladesh too, but our stronger trade ties are already delivering advantages for British businesses. I am pleased to announce today that Britain can now export polyhalite to India—it is an organic fertiliser mined in Yorkshire.”
