UK-India Free Trade Agreement

Caroline Nokes Excerpts

Monday 9th February 2026 Commons Chamber

[Chris Bryant]

I will talk about human rights in a moment, but if the hon. Gentleman can come up with a better way of finding a 0.14% increase in GDP, I would be very happy to hear it. Frankly, the idea that we would just turn our backs on one of the biggest economies and largest democracies in the world, and not say yes to a trade deal, is for the birds.

There is a whole series of human rights issues that we always want to raise with our trade partners, and we do so. When we are negotiating a free trade agreement, they are not necessarily a central part of it, but in this deal, for the first time ever, we have clauses on a whole range of human rights-related issues. The hon. Gentleman could easily point out that these are not legally enforceable, but they are an opportunity—both at the first review, which will come at entry into force, and on future occasions, which are laid out in the free trade agreement—for us to talk through these issues. Human rights issues are primarily the responsibility of the Foreign, Commonwealth and Development Office, through which we raise issues relating to Kashmir, particular individuals, labour laws and so on.

I am aware that non-tariff barriers are being removed through improved customs processes, reductions in technical barriers to trade, increased facilitation of digital trade, supportive intellectual property commitments and greater collaboration on new technologies. This will all help to make trade quicker, cheaper and easier.

On services, which are obviously very important for us as a services superpower, market access is locked in, including ensuring that UK companies are treated on an equal footing with Indian companies. The deal includes India’s first ever financial services and telecoms chapters. The free trade agreement is expected to boost services exports by £1.6 billion. On procurement, which again is very important for the UK, brand-new access to India’s federal procurement market will be locked in, guaranteeing access to approximately 40,000 tenders per year, worth at least £38 billion per annum, and exclusive treatment for UK companies. For the first time, UK companies will have access to India’s procurement portal.

I hope the colleagues will agree that CETA is a good deal for the UK, but I want to respond to a couple of points made in the Business and Trade Committee’s report. First, the deal will only be of any use if it is actually used by UK companies. We know that it will not always be plain sailing, thanks to varying rules in different states and provinces—that point was made in evidence to the Committee—the staging of tariff liberalisation will need explaining, and non-tariff barriers can be just as important as tariff barriers.

As the first Minister for trade policy and for exports, I am keen to ensure that businesses have all the support they need to exploit this deal. That is why we are protecting the Department for Business and Trade team in India, and why we have already engaged with more than 5,000 UK businesses on how to exploit CETA, through guidance, events and roadshows. As I said earlier, this is not just about Scotch whisky; it is also about Fever-Tree ginger ale to go with it and its Indian tonic water. We have also provided specific support to the UK cosmetics industry to exploit the cut in cosmetics tariffs, which will benefit companies such as Charlotte Tilbury and Dr.PAWPAW. As the Committee suggests, once we get to entry into force, we will monitor the operation of CETA’s provisions, including through the regular reviews built into the agreement.

This is also not the full stop in our developing relationship with India. Vision 2035, agreed with India alongside the free trade agreement, sets out a shared framework for deeper co-operation across technology, defence, climate and strategic exports, reinforcing the long-term direction of the bilateral partnership. We will also try to resolve other market access issues not solved in the free trade agreement—for example, legal services, recognition of qualifications and other specific state-level barriers. The UK is open to continuing negotiations for a bilateral investment treaty, as long as it works for UK businesses.

As I have said, this is a trade agreement, but I want to assure Members that it also promotes British values. We have secured India’s first ever chapters on anti-corruption, consumer protections, labour rights, the environment, gender and development, and the agreement includes the strongest environmental commitments that India has ever made in an FTA. Our key commitments and red lines have been maintained throughout, including protecting the NHS; ensuring that our immigration system is not affected; carving out defence and protecting our export controls; excluding sensitive agricultural sectors, including pork, chicken, eggs and milled rice; maintaining our food standards and animal welfare levels; and keeping the carbon border adjustment mechanism out of the deal.

Plagiarism is the sincerest form of flattery, so I am glad that the European Union has now reached political agreement on its own FTA with India, for which it seems the UK deal was used as a baseline, but the UK retains first mover advantage. I am hopeful that we will get to entry into force before the end of the summer, so that UK businesses can start exploiting the reduced tariffs this year, while the EU will still take some time to achieve ratification, and only the UK has secured access to India’s £38 billion federal procurement market.

Let me make one final point. The UK is a trading nation: we rely on free and fair trade, and we believe that global trade needs a set of rules. The World Trade Organisation will meet in Cameroon in the next few weeks. We believe that it needs upholding and reforming so that it can tackle the challenges of today, including electronic commerce, unfair subsidies, dumping and secure supply chains with agility and dependability. However, we also believe that trade agreements such as these, along with our membership of the comprehensive and progressive agreement for trans-Pacific partnership, help to secure our prosperity and enhance our international standing. We are still pursuing new or enhanced deals with the Gulf Co-operation Council, Türkiye, Switzerland and Greenland, and we are completing the text of our economic prosperity deal with the United States of America and our deal with the European Union. I commend this deal to the House, and I congratulate the former Ministers who secured it.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Secretary of State.

--- Later in debate ---

[Chris Bryant]

I was not going to make the point that the hon. Member went on to make—that his Government signed up to lots of similar arrangements—but I was going to respond to the intervention from the hon. Member for Dewsbury and Batley (Iqbal Mohamed). It is important that we make it clear that under the double contributions convention, a detached Indian worker and their employer in the UK would need to pay into the Indian provident fund. On top of that, they will need to pay £3,105 in NHS surcharges, and up to £769 in visa fees. On top of that, the employer would pay an immigration skills charge of £3,000, and £525 to issue a certificate of sponsorship, so I do not think that the numbers add up in the way that the hon. Member for Dewsbury and Batley was suggesting.

[Madam Deputy Speaker (Caroline Nokes)]

Order. The shadow Secretary of State has already spoken for longer than the Minister, which must be something of a record. I appreciate that there have been a lot of interventions on the shadow Secretary of State from Government Front Benchers, but perhaps he can draw his remarks to a close. The Minister will have ample time to make his points in the wind-up.

[Andrew Griffith]

I shall take good heed of those comments, Madam Deputy Speaker.

We support having a sovereign trade policy, and this is an excellent example of where it could have advantages. We are talking about one of the largest economies on the planet, which is growing approximately five times faster than the European Union. However, the deal could have been better. We are passionate about supporting our investors, lawyers, engineers, scientists and the wonderful services industry. We believe that they can compete anywhere in the world, provided that the field is level and the rules are fair, but we did not need to get a “good enough” deal across the line. British businesses needed something with a really good kick in it to get this country growing. Instead of a vindaloo of a deal, the Prime Minister came back with a bag of soggy poppadoms.