Source · Select Committees · Business and Trade Committee
12th Report - UK-India Comprehensive Economic and Trade Agreement (CETA)
Business and Trade Committee
HC 996
Published 21 January 2026
Recommendations
4
Accepted
Address remaining issues undermining trade agreement benefits and regularly report business utilisation to Parliament.
Recommendation
The Government must ensure that the remaining issues which risk undermining the Agreement’s benefits for key sectors are addressed. Ratification should not be treated as the conclusion of the process. Ministers must be held accountable for ensuring that businesses are …
Read more
Government Response Summary
The government states that the Department for Business and Trade (DBT) already oversees the utilisation and implementation of the Agreement through a coordinated, cross-departmental programme, and will update Parliament regularly on preparation, utilisation, and tariff preference uptake, and publish provisional data on utilisation rates within the first year.
Department for Business and Trade
View Details →
6
Accepted
Identify sectors for mutual recognition of professional qualifications and seek progress within twelve months.
Recommendation
The Government should identify sectors where mutual recognition of professional qualifications would benefit both parties and use the Professional Services Working Group to seek progress within twelve months of the Agreement taking effect. It should set out how it intends …
Read more
Government Response Summary
The UK and India will both speak to regulators ahead of the first working group meeting, to identify and encourage mutually interested UK and Indian relevant bodies to enter into negotiations on mutual agreements or arrangements for recognition of professional qualifications.
Department for Business and Trade
View Details →
8
Accepted
Utilise Working Group on Intellectual Property for UK strategic progress with India.
Recommendation
The Government should use the Working Group on Intellectual Property to pursue further progress with India in areas of mutual benefit and UK strategic importance, including in sectors identified in the Industrial Strategy. This should include continued dialogue on issues …
Read more
Government Response Summary
The government will continue to advance the IP agenda through the Intellectual Property Rights Working Group outlined in the FTA, and aligned with UK business priorities.
Department for Business and Trade
View Details →
10
Accepted
Monitor closely and report labour market impacts arising from the trade agreement.
Recommendation
The Government should closely monitor labour market impacts arising from the Agreement and report back to Parliament on its assessment. (Recommendation, Paragraph 71) Sustainability and labour standards
Government Response Summary
The government states that the mobility provisions are not expected to have a material impact on the labour market. They also mention that the Department for Business and Trade intends to monitor and evaluate the agreement, which is already stated in the impact assessment.
Department for Business and Trade
View Details →
16
Accepted
Publish utilisation data and regularly report on tariff preferences uptake to Parliament.
Recommendation
Concerns about remaining barriers to trade undermining UK exports to India despite the Agreement are well-founded. The Government should publish utilisation data for tariff preferences under the Agreement, consistent with its approach for other UK free trade agreements, and report …
Read more
Government Response Summary
The government will regularly update Parliament on FTA utilisation and tariff preference uptake, and will publish provisional data on utilisation rates within the first year, subject to information from Indian customs. They will also work with industry and the Indian government to address trade barriers, using working groups and JETCO to resolve issues, including those related to state-level barriers, standards, SPS, and technical regulations.
Department for Business and Trade
View Details →
17
Accepted
Ensure UK trade remedies and safeguard mechanisms are accessible, timely, and proportionate for import-facing sectors.
Recommendation
The Government should ensure that UK trade remedies and bilateral safeguard mechanisms are accessible, timely and proportionate for sectors facing increased import competition as a result of the Agreement. This should include clear guidance for businesses, particularly SMEs, on how …
Read more
Government Response Summary
The government will always consider whether overseas products have an unfair advantage and will use powers to protect sensitive sectors including a ‘bilateral safeguard mechanism’ and SME support.
Department for Business and Trade
View Details →
19
Accepted
Open structured, sector-focused discussions with India to reduce identified trade-distorting barriers.
Recommendation
To address non-tariff barriers, the Government should open structured, sector-focused discussions with India to reduce the most trade-distorting barriers identified by industry, using the Sub-Committee on Standards, Technical Regulations and Conformity Assessment. The Government should clearly identify priority issues and …
Read more
Government Response Summary
The government will actively engage businesses to address challenges in utilizing the agreement and use formal engagement mechanisms, including the Standards, Technical Regulations and Conformity Assessment Sub-Committee, to resolve issues. They have a large in-country team in India consisting of sector experts.
Department for Business and Trade
View Details →
21
Accepted
Assign clear Ministerial responsibility for FTA implementation to the Minister for Trade.
Recommendation
The Government should assign clear Ministerial responsibility for FTA implementation, which should be identified in the portfolio of the Minister for Trade and listed as one of their ministerial responsibilities. The Minister must ensure that implementation of FTAs, including CETA, …
Read more
Government Response Summary
The government states that the current Trade Minister is already responsible for both trade policy and exports and has ministerial responsibility for ensuring the implementation of FTAs is resourced and delivered, with substantial teams in place to support this.
Department for Business and Trade
View Details →
22
Accepted
Publish a detailed CETA implementation plan, including business routes and resourcing commitments.
Recommendation
The Government should publish a detailed CETA implementation plan, no later than three months before entry into force, including routes for businesses to raise market access problems; points of contact in the UK and in India; sector-specific guidance (including for …
Read more
Government Response Summary
The Government states that it is already committed to implementing CETA effectively and is ensuring that UK businesses are fully equipped to benefit from these opportunities. It refers to existing engagement with Chambers of Commerce, JETCO, working groups, and tools for businesses, but gives no specifics.
Department for Business and Trade
View Details →
Conclusions (3)
3
Conclusion
Accepted
There remain important issues that will require resolution and ongoing monitoring if the full benefits of the Agreement are to be realised. The Committee heard that the key bulk whisky tariff line has not been liberalised to the same extent as the Scotch-specific tariff codes. The automotive sector will also …
Government Response Summary
The government states that the Department for Business and Trade (DBT) oversees the utilization and implementation of the Agreement through awareness campaigns, sector-specific guides, and support for firms. DBT has already engaged over 7,000 organizations, and the government will regularly update Parliament on preparation, utilization, and tariff preference uptake.
18
Conclusion
Accepted
The Committee notes that UK businesses face significant non-tariff barriers in the Indian market, including regulatory complexity, inconsistent implementation, limited transparency and state-level frictions, as well as specific barriers such as export health certification requirements and India’s expanding use of Quality Control Orders. The Committee would like to see these …
Government Response Summary
The government says the deal tackles non-tariff barriers, will engage businesses to address challenges utilising the agreement, and will use the formal engagement mechanisms in the deal to resolve issues quickly. DBT has a large in-country team in India and substantial teams based in London focused on FTA implementation and utilisation.
20
Conclusion
Accepted
Implementation of CETA is critical to success of the deal and real benefits for UK businesses and growth in the UK economy. Tariff reductions and legal commitments alone will not translate into increased exports or investment 78 unless they are supported by effective delivery. The Committee sees CETA as a …
Government Response Summary
The government states that the Trade Minister is responsible for trade policy and exports and has ministerial responsibility for ensuring FTA implementation is resourced and delivered. They also mention that DBT has teams and a program to ensure businesses can leverage the FTA, including outreach to over 7,000 businesses.