Source · Select Committees · Foreign Affairs Committee
Recommendation 63
63
Rejected
Paragraph: 213
Set deadline for India-UK FTA and negotiate supply chain agreements with India.
Recommendation
We recommend that the Government set a deadline for the early conclusion of negotiations on the India-UK FTA. Unless already included in the FTA, the Government should also consider negotiating agreements with India similar to the UK-Australia supply chain and critical minerals agreements to establish shared principles of supply chain risk identification and mitigation. The UK should seek to increase its reliance on India for manufacturing and pursue enhanced maritime security co-operation.
Government Response Summary
The government rejects setting a deadline for the India-UK FTA, stating it will only sign a deal in the UK's best interests. It acknowledges the importance of resilient supply chains and existing trade/cooperation with India on manufacturing, but does not commit to new specific agreements with India or address maritime security cooperation.
Paragraph Reference:
213
Government Response
Rejected
HM Government
Rejected
152. While the Government recognises that there is value to concluding negotiations as soon as reasonably practicable, we do not agree with the Committee’s recommendation to set a deadline for the early conclusion of negotiations. We are committed to negotiating at pace but will not sign until we have secured a deal in the best interests of the UK. 153. Separately, recent geopolitical events and disruptions have shown how crucial strong supply chains are to building a resilient UK which can withstand and proactively tackle the challenges of today and the future. The Government is working with a wide range of international partners to identify and collaborate on shared supply chain issues, sign agreements and bring down market barriers. Recent examples are our critical minerals agreements with Canada and Australia and the UK-Republic of Korea Memorandum of Understanding and recently-established UK-ROK Critical Minerals Joint Working Group which will boost cooperation and supports our goal of strengthening supply chain resilience. 154. The UK relies on resilient global supply chains and imports for a consistent and predictable flow of critical goods which ensure the stability and functioning of our economy, including our health system and essential services. Strong and resilient global supply chains have a diverse supply base, which relies on an open international trading system and our priority is to work with allies and partners across the globe to promote it. 155. The Government recognises the importance of resilient and diversified manufacturing supply chains. We already increasingly trade and cooperate with India across a range of sectors and are aware of the manufacturing strengths India holds and is seeking to grow. For instance, areas such as electronics manufacturing. Increased trade and cooperation with India will bring greater choice, competition, innovation and security, for businesses and consumers in both our countries. Evidence of this cooperation can be seen with the recent Tata Group decision to invest over £4 billion in a new UK gigafactory. Indian foreign direct investment in the UK in 2021 was worth around £9.3 billion.