Negotiators, however, were unable to secure a Bilateral Investment Treaty being sought in parallel with talks for the trade agreement. Negotiations to secure an investment treaty continue.
Slashing tariffs
As it stands, the deal will cut through high tariffs on U.K. goods in India with 85 percent becoming tariff-free within a decade. The effect will be equivalent to slashing £1 billion in tariffs after 10 years.
Measures include lowering India’s 150 percent tariff on Scotch whisky by half immediately, before it is cut to 40 percent after ten years. Duties on the auto sector will drop from 100 percent to 10 percent with quotas on both sides for the sensitive sector.
Indian duties will also be lowered on cosmetics, aerospace, medical devices, electrical machinery and agriculture and food. Britain will lower tariffs on textiles, footwear, frozen prawns and other food products.
Talks stalled under the previous Conservative government over concerns about migration, better access for services firms and a host of other issues.
Business Secretary Jonathan Reynolds told reporters Tuesday afternoon that the concession on employee taxes applies only to company transfers between the two nations for up to three years, and said the deal will have “no impact on the immigration system.”
