UK to relaunch trade talks with India and form new Japan partnership

The UK is set to relaunch trade talks with India and form a new economic partnership with Japan, Downing Street has announced.

It was confirmed that trade discussions with India will reopen at the start of next year, following a bilateral meeting between Sir Keir Starmer and Indian leader Narendra Modi at the G20 summit in Brazil.

According to an official readout of a meeting in Rio de Janeiro, both Starmer and Modi agreed to work towards an “ambitious UK-India comprehensive strategic partnership to take the relationship to new heights in trade and investment, security and defence, technology, climate, health and education”.

Starmer also met the Prime Minister of Japan Shigeru Ishiba, with the two leaders discussing the UK-Japan relationship across trade, climate and security. 

A No10 spokesperson said the pair “agreed to launch today a new Japan-UK Foreign and Trade Ministers’ meeting, known as the Economic 2+2” which is intended to further advance bilateral cooperation on international trade, economy, and geopolitical issues.

Starmer also “reiterated his commitment to the partnership between the UK, Italy and Japan on the Global Combat Air Programme”, the spokesperson added, “at a time of increased global volatility”. 

Ukraine support

They continued: “Both agreed that now was the time to double down on support for Ukraine, noting Putin’s increasing desperation highlighted in recent weeks by his decision to deploy North Korean troops in his illegal invasion.

“They looked forward to deepening their partnership further and speaking again soon.”

Following the meeting between Starmer and Modi on Monday the PM said a deal between India and the UK would help support jobs in the UK, with a trading relationship with India worth £42bn in the 12 months to June 2024, according to Downing Street.

Starmer said: “Boosting economic growth is key to improving living standards for working people.

“A new trade deal with India will support jobs and prosperity in the UK – and represent a step forward in our mission to deliver growth and opportunity across our country.”

Business and trade secretary Jonathan Reynolds has described India as a “vital trading partner for the UK”.

India discussions

He said: “Whether lowering Indian tariffs to help British firms export to this dynamic market or boosting investment which already supports over 600,000 jobs across both countries, striking a deal is important to deliver this government’s core mission of driving economic growth.”

In July, Reynolds had said that the UK intended “to forge better trading relationships with countries around the world”.

Discussions between New Delhi and London over a trade deal had stalled under the last government.

Former Prime Minister Boris Johnson had previously said that he wanted a deal done by October 2022 to coincide with Diwali celebrations.

But Rishi Sunak’s administration declined to set a target date for signing off on an agreement, which was ultimately unsuccessful.

Earlier this year the UK and India signed off on a scheme aimed at strengthening co-operation on artificial intelligence and technologies.