Source · Select Committees · Business and Trade Committee
Recommendation 2
2
Acknowledged
Trade agreement delivers immediate market access benefits for goods, including spirits and automotives.
Conclusion
The most immediate benefits are concentrated in goods sectors facing historically high Indian tariffs, particularly spirits and automotives, where the Agreement delivers commercially significant and predictable market access for the first time. The Agreement also delivers new market access in government procurement, with India opening its central government procurement market for the first time. At the same time, the Agreement preserves the UK’s existing sanitary and phytosanitary protections, does not compromise a closer SPS deal with the EU and ensures that market access gains are not achieved at the expense of domestic standards. (Conclusion, Paragraph 50)
Government Response Summary
The government acknowledges the benefits of CETA, predicting it will boost UK GDP by £4.8bn by 2040, and that India will drop tariffs on 90% of lines.
Government Response
Acknowledged
HM Government
Acknowledged
CETA goes well beyond India’s precedent, opening the door for UK firms to the fastest growing G20 economy. By 2040, it is predicted to boost UK GDP by £4.8bn (0.13%), wages by £2.2bn, and bilateral trade by £25.5bn every year. India will drop tariffs on 90% of lines, covering 92% of current UK exports, giving the UK tariff savings of £400m a year immediately on entry into force, rising to £900m after 10 years, even if there is no increase in trade. India’s average tariff will fall from 15% to 3%. Every region and nation will benefit from the agreement, including: • A £210m boost for the North West, driven by aerospace and automotive wins. • A £190m boost for Scotland supported by cuts on whisky and satellite tariffs and financial services access. • A £190m boost for East of England, generated through tariff cuts and improved rules for medical device and clean energy products. • And a £50 million boost for Northern Ireland, supported by cuts on whisky and the reduction of tariffs on industrial products for aerospace, medical technologies, and electronics.