UK-India Free Trade Agreement

Charlie Maynard Excerpts

Monday 9th February 2026 Commons Chamber

[Charlie Maynard (Witney) (LD)]

I refer Members to my entry in the Register of Members’ Financial Interests regarding the business that I founded in 1996, BDA partners, in which I still hold a stake but have no role or responsibility.

Economically, this agreement offers some benefits. As per the Government’s impact assessment, and as the Minister stated, the UK’s gross domestic product is estimated to increase by 0.13% as a result of this FTA. That is equivalent to £4.8 billion. That is in the long run— 0.13% by 2040. Let us put that into context: the hit to our economy from Brexit is around 6% to 8% of GDP—in the region of £210 billion—so its impact is 44 times larger. That is now, compared with the 0.13% we get in 15 years’ time.

[Sir Ashley Fox]

The hon. Gentleman quotes a Brexit hit of 6% to 8% of GDP. Has he just invented that figure or has he got some evidence for it?

[Charlie Maynard]

The National Bureau of Economic Research, in the United States.

[Andrew Griffith]

But you don’t like the States.

[Charlie Maynard]

I certainly like the States.

While we are making comparisons with Europe, I note that under the UK’s free trade agreement 92% of our exports to India will enter tariff-free. Under the EU’s deal, 96.6% of its exports can enter India tariff-free. Perhaps there is some logic, after all, to bigger trade blocs having more leverage. I wholeheartedly agree with the comments from the hon. Member for Arundel and South Downs (Andrew Griffith) about national insurance contributions. I am also deeply concerned about that, as is my party. I also take the Minister’s point about visa fees and everything else, but by the time we add all those together, I think that UK Inc—whether in my constituency of Witney or across the UK—will still be at a major disadvantage. This risks undermining British labour—

[Chris Bryant]

Wrong.

[Charlie Maynard]

I really hope I am wrong, but I don’t think I am.

Moving beyond the numbers, I highlight the concerns of civil society groups, which many Members have mentioned, about clauses in the agreement on labour, the environment and human rights being characterised by a pattern of aspirational language and a lack of enforceability, with the result that they are not subject to the dispute settlement mechanism—cute words but no teeth. The Liberal Democrats have long called for a set of minimum standards to benchmark future trade agreements, which would include human rights, conflict and oppression and environmental, labour and safety standards, where they can be negotiated, based on a UK trade and human rights policy and a trade and development policy.

I want to ask some question about India’s role in busting the trade sanctions that the UK has put on Russia. To recap: Russia invaded Ukraine in February 2022, and both the UK and the EU banned direct imports of Russian oil and petroleum products in December 2022. However, a loophole stayed open that allowed derivative products including petrochemicals imported from third countries into the UK to continue using Russian-origin crude oil and gas. In July 2025, the EU amended its sanctions legislation to target imports of petrochemicals from third countries that used Russian-origin oil. This has now taken effect in the EU. The EU has blocked this loophole. In October 2025, the UK announced a further sanctions package targeting specific third-country entities that supported Russian fossil fuels. That included India’s Nayara Energy, which is part-owned by Russia’s state oil company Rosneft.

On 2 December 2025, the Trade Minister told the Business and Trade Committee, of which I am a member,

“we want India to do less business with Russia because we want Russia’s machine to be debilitated. There are lots of things that I want to achieve in the world and not all of them can be achieved through FTAs.”

The Trade Minister and the trade team fully understood, therefore, that India was, and is, selling Russia-originated petchems into the UK. We had leverage when we were negotiating the FTA, but instead the UK decided to turn a blind eye to India’s sanction-busting, helping Russia’s war effort. This continues right now, with the UK importing jet fuel and other petrochemicals from India that are manufactured with Russian oil and gas. The refining loophole is still there because His Majesty’s Government have not yet legislated to ban imports of derivatives from Russian crude. The Government say that they expect a ban to be enforced in spring 2026, whenever that is.

Analysis by the Centre for Research on Energy and Clean Air shows that between the ban on direct imports coming into force in 2022 and the end of 2025, the UK has imported £4 billion-worth of jet fuel and other oil products made at refineries in India and Turkey, which run partially on Russian crude, and that every month the UK delays banning oil products made from Russian crude, it is effectively writing the Kremlin a cheque for around £44 million.

It gets worse. Four of the five largest oil refiners in India are majority-owned by the Indian Government, with Reliance being the fifth, so it is not just the Indian refiners that are helping Russia by selling us petchems; the state of India itself is right now selling jet fuel and other petrochemicals derived from Russian oil and gas into the UK. What have we done about it? We have signed a free trade agreement with India. To add insult to injury, the loophole to be closed, as far as I can tell, just covers oil derivatives, but petrochemicals are derived from natural gas, too. What is happening with those?

I have five questions for the Minister. First, what is his justification for signing an FTA with a country that is helping Russia to breach its sanctions? Secondly, was this issue discussed in the FTA negotiations? Thirdly, does the planned ban cover petrochemicals imported from India and other third countries derived from either oil or gas? Fourthly, please will the Minister tell us the specific date on which the ban will come into force, what steps will be required to effect it and what the timeline is for each of those steps? Finally, what are the reasons for the delay in implementing the ban? Why have the Government not already closed the loophole?

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[Chris Bryant]

I am as committed to remaining within the European convention on human rights as I ever was, as are the UK Government. It would be a derogation of our international standing around the world if we departed from it. That is one of the many reasons that I oppose not only the Conservative party, which seems to have gone doolally in recent years, but those Members who were elected as Conservatives and have now joined another political party.

I want to make it absolutely clear to my hon. Friend the Member for Bradford East and to others who have referred to these issues that Kashmiri Britons are of course listened to. The kind of stories that we have heard concern us.

The hon. Member for Witney (Charlie Maynard) pushed in the other direction on Brexit, but he made a good point with which I completely agree. I might slightly disagree with him about the precise amount of harm that Brexit has done to our trade opportunities in the UK, but I note that a very large number of UK businesses no longer export to the European Union, and that is a massive failure for the UK. That is why we are keen to secure a better deal with the European Union, and that is what we are working on. He talked about sanctions and Russia. I am appearing before the Select Committee on which he sits, so he gets many bites of the cherry. I say to the Chair of the Committee, my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), that when I come to talk about trade sanctions in the next few weeks, I will be happy to go into the specific details that he has raised on Russia.

I gently say to the hon. Member for Witney that I get a bit irritated when I hear Lib Dems talking about Russia, because I remember being in this House in 2014 when Russia first invaded Crimea. I know he was not in the House, but the Liberal Democrats were part of the Government. It was not just that Government but many other Governments who essentially allowed Putin to take Crimea with impunity, which has left us with some of the problems we have today. I completely agree with him that we need to debilitate the Russian system as much as possible. We have introduced sanctions on entities, including India’s Nayara Energy Ltd, to ensure that we disrupt Russia’s energy revenues. We are undermining the shadow fleet wherever possible. We have announced a further 500 sanctions.

[Charlie Maynard]

Will the Minister give way?

[Chris Bryant]

I am reluctant to give way, because I have only another four minutes. The hon. Member is on the Select Committee, so he will soon be able to ask me as many questions as he wants.

[Charlie Maynard]

It will take one second.

[Chris Bryant]

It will not be one second; that is an untruth.

On 25 October, we said that we will extend our ban on the import of oil products refined in third countries using Russian crude oil.

I will refer specifically to the constituent of my hon. Friend the Member for West Dunbartonshire (Douglas McAllister). It is that constituent’s 39th birthday today. My hon. Friend knows that I have met his constituent’s family. It is good that some of the charges against him have already been dealt with and he has been acquitted. We want to see the rest of the charges—I think another eight charges have been laid against him—dealt with as swiftly as possible. We make that argument to the Indian Government as frequently as we can. My hon. Friend did not refer to this, but I think he would agree that there should be a full investigation into his constituent’s allegations of torture. That is an important part of us maintaining an open relationship with India.

The hon. Member for Weald of Kent (Katie Lam) made a speech primarily about one specific issue. It was brief and to the point, for which I commend her—if only I could learn to do the same. She referred to the double contributions convention. I just point out to her that the previous Conservative Government made almost identical arrangements with a large number of countries, including Chile, Japan, South Korea, all of the EU, Iceland, Liechtenstein, Norway, Switzerland, Barbados, Canada, Jamaica, Mauritius, the Philippines, Bosnia and Herzegovina, North Macedonia, Serbia, Montenegro, Kosovo, Turkey and the United States of America. This deal will not undermine British workers—that is the Select Committee’s finding—and it will not make it cheaper to use Indian workers. This agreement is about highly skilled workers employed by Indian companies on a temporary basis paying contributions to their own country rather than in the UK. The deal has not finally been struck; negotiations are ongoing. That deal will be subject to its own process of going through the House, during which Members will be able to raise points.

Business and Trade Committee

Charlie Maynard Excerpts

Thursday 27th November 2025 Westminster Hall

[Liam Byrne]

This is a very good point. We want to ensure that there is an enshrinement of the principles of the Bill, so that the private sector has clarity, certainty and confidence in the durability of the economic security regime that we operate in this country. In the inquiry, we heard overwhelming evidence that businesses frankly do not know whom to ring when there is a problem. They did not know whether there were particular spaces where they could work together, certainly with agencies but also with economic security services more generally. Providing clarity, certainty and durability is the only way in which we will be able to mobilise the scale of long-term finance that we will need in order to upgrade the resilience of this country for new times.

[Charlie Maynard (Witney) (LD)]

I thank the Chair of the Select Committee for his help and work on this issue. I want to ask his opinion on the efficacy of our arms export control regime. We had two sessions in which we were looking into the F-35 in Gaza, and essentially it seems like the UK has outsourced its arms export controls to the Americans for F-35 replacement parts. Also, we continue to sell a lot of weapons to the United Arab Emirates, and it has been widely reported in the international press that the UAE is arming the Rapid Support Forces, which is creating enormous numbers of atrocities in Sudan. Does the right hon. Member think that our arms export control criteria are up to scratch?

[Liam Byrne]

I think there is a real opportunity in the course of the next year to modernise the way we export arms, and we will need to do that because of the simple reality that the definition of an arm in new times is very different. Many of our allies talk to us, as members of the Committee, about the need to strengthen in particular intellectual property export controls in the future. In a world where ideas can be weapons if they are, for example, novel artificial intelligence programmes, we have to take a much broader approach to this in the future. It is not clear to us that the way we license weapons and control adherence to licence conditions is strong enough, so it is an area to which the Select Committee will need to return. Again, if we are upgrading our economic security defences, I do not think we can do that, in the world in which we live, without comprehensively upgrading our arms control systems too.

Small Modular Nuclear Reactor Power Station: Wylfa

Charlie Maynard Excerpts

Monday 17th November 2025 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

I call Liberal Democrat spokesperson.

[Charlie Maynard (Witney) (LD)]

New small modular reactors have real potential to help reduce our reliance on foreign gas and bring down energy bills, as well as bringing a welcome boost to jobs and investment in Anglesey. SMRs should be where the focus is when it comes to nuclear, not big, expensive nuclear power stations that cost multiples more and take far longer to build.

The Liberal Democrats are pleased to see SMRs coming forward as part of a mix of cost-effective and safe decarbonised power generation, but will the Government please confirm that they will also maintain focus on boosting wind and solar power generation in order to bring down everyone’s energy bills? My hon. Friend the Member for Thornbury and Yate (Claire Young) has been working closely with constituents who will now be disappointed that the alternative site of Oldbury has not gone forward, so can the Minister clarify what the future is for that site?

[Michael Shanks]

The hon. Gentleman is right to say how important this next generation of nuclear is—but alongside other technologies. The Government have been really clear that our clean power mission is about wind, solar and storage, but it is also about nuclear. That combination is how we deliver our energy security and get away from the volatility of fossil fuels, and it is how we create thousands of jobs across the country. We need all of that.

The hon. Member is right to highlight Oldbury, which is a hugely important nuclear site that is owned by Great British Energy Nuclear. We continue to look at the future potential for Oldbury and other sites. This is not the limit of the Government’s ambition on nuclear; it is the next stage of that ambition. Wylfa was judged as the best possible site for the SMR programme and it is right that we put our flagship programme on the best possible site, but we are ambitious about the future of nuclear and Great British Energy Nuclear is looking at a range of sites across the UK—including both Oldbury and sites in Scotland—for potential future projects.

Oral Answers to Questions

Charlie Maynard Excerpts

Thursday 17th July 2025 Commons Chamber

[Jonathan Reynolds]

I thank my hon. Friend warmly for his question. I am excited about this. The strategic sites accelerator will prepare and accelerate sites for development by using Government tools, such as land acquisition, planning certainty and infrastructure support, to overcome existing barriers to investment on sites. It is designed to create jobs, to attract investment and to support our industrial and net zero priorities. It will work alongside other initiatives such as the connections accelerator service, which will streamline grid connections for major investment projects. It is about going faster, being bigger and being more ambitious for new investments, such as those that could come to my hon. Friend’s area. I can tell him that the Office for Investment is working jointly with the Ministry of Housing, Communities and Local Government and Ofgem to take this vital work forward. I expect capital to be deployed initially under this programme in 2026-27.

[Charlie Maynard (Witney) (LD)]

4. If he will suspend the export of UK-produced F-35 components to Israel.

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

I am conscious of the hon. Member’s long-standing interest in these matters. I can assure him that exports of F-35 components directly to Israel are already suspended where they are for use by Israel and not for re-export to other countries.

[Charlie Maynard]

Our strategic export licensing criteria state specifically that licences should not be granted where there is

“a clear risk that the items might be used to commit or facilitate a serious violation of international humanitarian law.”

Given that the courts have sent this question back to Parliament, does the Minister accept that Israel is committing breaches of international humanitarian law; does he accept that the export of F-35 components is aiding in the commission of these wrongful acts; and if he maintains that we are not in breach of our own arms export laws, will he explain on the Floor of this House the basis for how he thinks we are compliant with our own laws?

UK Modern Industrial Strategy

Charlie Maynard Excerpts

Monday 23rd June 2025 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Select Committee Member Charlie Maynard.

[Charlie Maynard (Witney) (LD)]

The Secretary of State said,

“The UK has long been and will remain a champion of free trade”

—if only! It is not on the big stuff or the important stuff. Leaving the EU’s customs union and single market has reduced UK GDP by between 2% and 4%. The deal with India is good news, but according to the UK Government’s own estimate, it adds 0.1% in the long term—that is, 20 to 40 times smaller. UK exports are down 13% since the trading co-operation agreement took effect. That impacts people in my constituency and all hon. Members’ constituencies. When will the Government move faster to repair the enormous economic damage of a hard Brexit?

[Jonathan Reynolds]

I understand the point that the hon. Gentleman makes. This was the question that faced the nation at the time of the referendum. If a country leaves a single market and customs union, there will of course be economic consequences, particularly when there is the free movement of people, but that is the decision the country took. Let’s look to the future, not the past. We could have this argument forever. We would have a situation where the business uncertainty created by never fundamentally coming to a settlement on Brexit would in itself become as big a problem as the impact of leaving the single market that he talks about.

Of course, if we were in a customs union without being part of the EU, could a G7 economy subcontract that area of policy entirely to other countries and not have control of a key aspect of our economy? Honestly, I do not think that is reasonable. I appreciate the Liberal position is almost certainly to go back into the European Union—there is consistency there—but I say again that doing so would mean, for instance, denying us the benefits of the India trade deal and services access to India, the reduction of tariffs on agriculture, whisky and cars, and the benefits of the US agreement, which has saved tens of thousands of jobs.

Oral Answers to Questions

Charlie Maynard Excerpts

Thursday 13th March 2025 Commons Chamber

[Justin Madders]

Microbusinesses such as that of Mr Stevens are central to the Government’s growth mission. We are committed to strengthening our relationship with the EU and to tackle trade barriers and frictions, and we regularly engage directly with businesses and their representative organisations to understand the difficulties they face. Our export support services help small and medium-sized enterprises navigate opportunities in EU markets and get the practical help they need to do so. For example, the Unlock Europe programme, which was launched in December as part of the export academy, offers practical guidance to help UK businesses enhance their exporting potential to the EU.

[Charlie Maynard (Witney) (LD)]

Our country’s very high electricity costs are another huge problem facing businesses in my constituency and nationally. Reintegrating our power markets with Europe’s through the single-day ahead coupling system would cost our country nothing, save costs for businesses, reduce carbon dioxide and make our power markets more efficient. Will the Minister take fast steps to reintegrate our electricity markets with those of our European neighbours?

[Justin Madders]

I thank the hon. Member for his tangential question relating to GPSR. He makes an important point about energy costs, and we are working closely with the EU on how to build on that, and of course the industrial strategy will also be looking very closely at how energy costs can be brought down for businesses.

Budget Resolutions

Charlie Maynard Excerpts

Wednesday 6th November 2024 Commons Chamber

[Jonathan Reynolds]

I have already given the right hon. Gentleman a go. I will make a little progress, and we will see whether he can do a better one next time.

The result was a protracted period of anaemic growth. Had our economy grown at the average rate of other OECD countries over this period, it would have been £171 billion larger. Imagine the difference that would have made to all of our communities and to today’s Budget debate. British firms, facing such uncertainty, have not seen investing domestically as a sufficiently attractive proposition. They have been reluctant to adopt new technology, to upskill their employees or to plough money into research and development. We have even heard that, in any given year, roughly 40% of UK firms choose not to invest at all. We want to change that for good. We want to give businesses certainty, confidence and stability so that they can make decisions for the long term.

That is why, at the Budget, the Chancellor reaffirmed our new modern industrial strategy. Invest 2035 will be a central pillar of our growth mission. The strategy will allow businesses to plan not just for the next 10 months, but for the next 10 years. It has already won the backing of Make UK, which has told us that businesses will no longer have to

“fear the constant chop and change in policy we have seen over the last decade.”

Instead, they can focus on the long term.

Our industrial strategy will create a strong pro-business environment, making it simpler and cheaper for companies to scale up and invest. It will unleash the potential of our high-productivity services and industries, because our recent economic history has taught us that we have to play to our strengths. Over the last 25 years, high-productivity sectors were responsible for roughly 60% of our economy’s entire productivity growth. Looking at the figures since 1990, over half of the UK economy’s GDP growth has come from just three sectors—information and communications technology, financial and professional services, and advanced manufacturing.

That is why our industrial strategy will channel support to eight key growth-driving sectors, those in which the UK services sector will excel both today and tomorrow—the services and industries that present the greatest opportunity for output and productivity growth over the long term.

[Charlie Maynard (Witney) (LD)]

How does that all gel with the fact that the OBR is saying that business investment will fall by 0.6%, as a share of GDP, by 2029? It sounds great, but it does not add up in the OBR’s eyes. Will the Minister please elaborate?

[Jonathan Reynolds]

We have a similar question. The Government’s wider pro-business changes cannot be modelled by the OBR, and we know that we have to prove them. There is simply no way that we will get to the higher business investment, the higher productivity growth and the stronger economic growth that we need in all parts of the country unless we are honest, robust and responsible with the public finances, as this Budget is and the previous Government were not. If the Budget does not set the trajectory for strong long-term public investment, to leverage in that degree of private investment, we will not have the foundations to succeed. I am so excited by this Budget because it gives us those strong foundations for the future.

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[Charlie Maynard (Witney) (LD)]

In this Budget debate, I am going to focus on the massive disconnect between the Government’s talk about growth and investment and what the OBR considers will be the outcome. Sadly, we can want something and talk about it, but if we do not enact the policies, we are not going to get it. That will hit everybody across the country really hard, particularly the most vulnerable. I am seeing that reality in my constituency, where a lot of employers are relocating plants abroad to the EU, rather than relocating and growing those jobs in the UK. That is not just happening in my constituency: very likely, it is happening in every other Member’s constituency as well. That is a huge problem for our public services, which are ultimately underwritten by our taxes.

As a result of this Budget, real private consumption as a share of GDP is set to fall by 0.4% by 2029, and real business investment is set to fall by 0.6%. It is not me saying that: it is the OBR. That is very different from what the Secretary of State has told us. It leaves real GDP growth lower in the outer years, in the 2027-29 forecast—again, not my words, but the OBR’s. As per OBR data, Brexit is cutting our long-run productivity by 4%, and is cutting the overall trade intensity of our economy by 15% in the long term. The UK has a free option to boost economic growth at zero fiscal cost by restoring a closer economic relationship with Europe. However, although not a single person on Labour’s Front Bench even voted to leave the EU, we find ourselves with a Government supporting daft Conservative economic policies that nobody in the country voted for, such as remaining outside the customs union and the single market.

Even before Trump’s win today, we as a country could not afford to be taking these wrong decisions. Continuing to do so, wilfully and in direct contradiction of the facts, is neglectful and shows a disregard for the wellbeing of our country. I urge the Government to change course.