Source · Select Committees · Business and Trade Committee
Recommendation 15
15
Acknowledged
Tariff liberalisation risks limited utilisation and increased competitive pressures for some UK sectors.
Conclusion
Tariff liberalisation under the Agreement is commercially meaningful for key UK exports. However, long staging periods, complex rules of origin and administrative burdens risk limiting utilisation, particularly among SMEs. The Committee notes that some sectors, including textiles, ceramics and potentially dairy, may face increased competitive pressures as a result of the Agreement. (Conclusion, Paragraph 98)
Government Response Summary
HM Government will continue to update Parliament regularly on preparation, utilisation, and tariff preference uptake, will work with industry and the Government of India on concerns raised, and will establish clear and continuous feedback loops with UK businesses.
Government Response
Acknowledged
HM Government
Acknowledged
HM Government will continue to update Parliament regularly—through written statements, committees, and scrutiny processes – on preparation, utilisation, and tariff preference uptake. As with previous UK FTAs, we will also endeavour to publish provisional data on utilisation rates within the first year after entry into force - subject to information provision from Indian customs. HM Government will work with industry and the Government of India on concerns raised where they prohibit trade or undermine the FTA. This deal goes further than any India has ever signed in tackling non-tariff barriers. In addition, we now have formal working groups, implementation committees and a ministerial level JETCO to raise and resolve issues quickly. Where state level or regulatory barriers persist, we will use these structures to address them directly with India – including through sector focused subcommittees on customs, standards, SPS, and technical regulations. Entry into force is the start, not the end. The agreement must evolve, and we have a built-in review within five years, and every five years after that, or sooner if agreed. We will establish clear and continuous feedback loops with UK businesses from the point of entry into force. Through JETCO and FTA subcommittees, we will identify priority issues with business, take them up with India, and track progress systematically.