UK-India Free Trade Agreement

Chris Bryant Excerpts

Monday 9th February 2026 Commons Chamber

[The Minister of State, Department for Business and Trade (Chris Bryant)]

I beg to move,

That this House has considered the UK-India Free Trade Agreement.

I will start by saying why this deal is so important. That may seem obvious, I suppose. We did £47.2 billion-worth of trade with India last year. That was up 15% year on year, and India is now our 10th-largest trading partner, but it is the future potential that stands out. India has the highest growth rate in the G20. It is likely to become the third-largest economy in the world by 2029. By 2050, India will be home to more than a quarter of a billion high-income consumers. Demand for imports is due to grow as well, reaching £2.8 trillion by 2050. Assuming global foreign direct investment into India continues on its recent trajectory, it could grow to £1 trillion by 2033.

Despite all that, India’s markets have been behind some of the highest barriers in the world. It has some of the highest tariff rates in the G20, with gin and whisky at 150%, cars at 110% and cosmetics at 22%. Soft drinks, lamb, fish, chocolate and biscuits—I know that is an odd combination—are at 33%. In 2024, India was ranked as the eighth most restrictive services market by the OECD. That inevitably either prices many UK products out of the market or makes them a premium product beyond the reach of many in India.

Some 42% of UK businesses surveyed by Grant Thornton in 2024 said that they would want to build a presence in India, and 72% said that a free trade agreement would encourage them to explore the Indian market. The agreement that this Government secured was a momentous achievement. Others had been trying to get a deal like it for years and failed, but this Prime Minister, along with the then Secretary of State for Business and Trade, my right hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds), and my predecessor, my right hon. Friend the Member for Lothian East (Mr Alexander)—I pay tribute to them—brought home the goods.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

rose—

[Chris Bryant]

Oh dear. I will give way, but I think I know what my hon. Friend is going to say.

[Gareth Snell]

The UK is the single largest importer of Indian ceramics. The trade deal removes some of the tariffs that we apply to Indian imports. The removal of those tariffs, along with industrial energy pricing in India, means that those imports become incredibly competitive in comparison to our domestic market. In some cases, those imports are well below our own market production point. Bricks are also affected. We are the single largest importer of Indian bricks, yet our own brick kilns stand at two-thirds capacity. Can the Minister set out the protections in this trade deal to ensure that while we get the new markets for our exports, we do not undercut our domestic market with cheaper imports?

[Chris Bryant]

I thought my hon. Friend might be about to talk about ceramics. He regularly speaks up—privately to me and publicly in the House and elsewhere—on behalf of his constituents, and he is right to do so. As he knows, I visited some of the businesses in his constituency, and I am keen to ensure that we do everything in our power within the Department to support, protect and enhance the British ceramics industry, which is an important part of our work. I just say to my hon. Friend that the overall impact of this agreement on the ceramics industry will be limited, because 543 out of 577 lines—steel lines, for instance—were already at 0%. The remaining 34, which we brought to 0% as part of the deal, all currently have tariffs of just 2% or 3%, and India is not a prominent source of imports for those sectors.

I accept that there are broad issues for the ceramics industry, and I have seen everything that Mr Flello, a former denizen of this place, has produced. I do not think that this agreement is the problem. There are other issues that we need to address, not least the issues that my hon. Friend raises in relation to energy costs, which are very specific to the ceramics industry.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

The evidence that we took in the Business and Trade Committee did raise concerns about the impact of the deal on both the brick industry and the ceramics industry in the UK. The Minister knows that the Trade Remedies Authority is not really equipped with the tools that it needs to defend us in this new world; nor has the Competition and Markets Authority yet seen fit to finalise its foreign subsidy control regime, despite two years of consultation. Will the Minister at least assure the House that he will keep a very close eye on this matter, and will not hesitate to bring forward protections or trade remedies if the need arises?

[Chris Bryant]

Yes, of course. I read the report from my right hon. Friend’s Committee over the weekend, and it is a very fine report; indeed, some of what I have already said was lifted directly from it. Broadly speaking, I have the impression that the House might be content to proceed with the agreement, and the Committee was certainly content to proceed with it. As my right hon. Friend will of course know, I guaranteed to him that we would have a debate during the Constitutional Reform and Governance Act 2010 period, and we are now having a debate in the House during that CRaG period.

My right hon. Friend made a good point about trade remedies. In a whole series of sectors, we need to keep our review alert to that. He may wish to make some points later about labour in brick industry that are made in his report, but let me point out again that nearly 90% of ceramics imports from India already come into the UK tariff-free, so I am not sure that the agreement will lead to the particular problem that some in the sector expect.

The agreement goes well beyond India’s precedent in opening the door for UK businesses. As the Select Committee said in its report,

“The UK-India Comprehensive Economic and Trade Agreement (CETA) is the UK’s most economically significant bilateral free trade agreement since leaving the European Union.”

It boosts UK GDP by £4.8 billion, which is 0.13% of GDP. It boosts wages by £2.2 billion, and it boosts bilateral trade by £25.5 billion every year in the long run, by 2040. India will drop tariffs on 90% of lines, covering 92% of current UK exports, giving the UK tariff savings of £400 million a year immediately on entry into force, rising to £900 million after 10 years, even if there is no increase in trade. India’s average tariff will fall from 15% to 3%.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for his enthusiasm and energy in doing this job. I think that we welcome the tariffs.

The agreement was projected to give Northern Ireland’s economy a boost of some £50 million. Three distilleries in my constituency— Echlinville, Hinch and Rademon—will take advantage of the reduction in the whisky tariff. The opening of markets for manufacturing and engineering has also been referred to. Let me say with great respect, however, that six months after the agreement, Northern Ireland has not yet seen much happen. I know that the Minister is keen to make it happen, but may I ask him, please, when it will happen?

[Chris Bryant]

I believe that the hon. Gentleman is a is a teetotaller. Is that right?

[Jim Shannon]

Sometimes.

[Chris Bryant]

Sometimes! Perhaps a tee-slightly-er or a tee-occasionally-er, but not total. [Interruption.] Yes, only in the early morning. Well, I got that completely wrong.

Anyway, I think all Members will want to celebrate the fact that we are managing to get the whisky tariff down from 150% to 75%, and then down to 40%. That will be transformational. Incidentally, this is not just about whisky itself; the other day I was with one of the founding members of Fever-Tree, who pointed out that it is also about soft drinks, including the soft drinks that go with the whisky, ginger ale being a classic instance. If we can get Fever-Tree ginger ale out to India at the same time, or for that matter—who knows?—perhaps even Indian tonic water, that will be a significant benefit for us.

The hon. Gentleman made a perfectly legitimate point about timing. Plenty of companies are asking me, “When is it all going to start?” We have to go through a ratification process, and what we are doing now is part of that. India has its own process, which is largely in the hands of Mr Modi directly, but I am very confident that that can happen fairly swiftly, and I hope very much that in the next few weeks and months we will be able to declare a date for entry into force.

There is always a slight moment between concluding the negotiations, the signature, the ratification and then entry into force. We cannot ever be precise about the date of entry into force until ratification has proceeded, but we are working as fast as we can. There is one other element that we always said we wanted to happen simultaneously: the double contributions agreement, which His Majesty’s Revenue and Customs is negotiating with India. As soon as all that is completed, I hope we will be able to get to entry into force. I will come on to the implementation.

I should just say that I slightly confused all my tariff lines earlier between steel and ceramics. We will tidy that up a little later, if that is all right with you, Madam Deputy Speaker.

Every region and nation will benefit from the agreement, including a £210 million boost for the north-west, driven by aerospace and automotive wins; a £190 million boost for Scotland, supported by cuts to whisky and satellite tariffs, and by financial services access; and a £190 million boost for the east of England, generated through tariff cuts and improved rules for medical devices and clean energy products. There are some big winners, and I have already talked about whisky. We estimate that whisky exports will increase by £230 million—an 88% increase. The tariffs on autos will fall from over 100% to 10% under quota, which will phase from combustion engines to electric vehicles. Auto parts and car engine exports are expected to increase by £189 million—a 148% increase.

The tariffs on cosmetics will fall from 20% to as low as 0%, which will boost exports by £400 million—a 364% increase. I talked to Charlotte Tilbury about this the other day, and she was absolutely—[Interruption.] The Whip is very keen on Charlotte Tilbury, so I will pass on her request for further information. I think you are putting in a request as well, Madam Deputy Speaker. The important point is that we need to make sure that businesses know that there is this new opportunity out there in India, and we need to maximise the exploitation of the new tariffs.

[Iqbal Mohamed (Dewsbury and Batley) (Ind)]

According to the Government’s figures, this trade deal will add only 0.14% to our national GDP. What are we giving up in return for that measly amount of benefit, and is it really worth sacrificing our commitment to human rights to sign these kinds of trade deals with countries and leaders who are reported to have breached human rights?

[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.

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[Andrew Griffith]

The hon. Gentleman makes an important point. I do not want to simply agree with him for the sake of it: it is not easy for Chancellors of whatever flavour to balance the books, but where we have wonderful industries such as all our drinks and spirits industries, including, if I may say so, our English wine industry, the Government must do everything they can to promote them—

[Chris Bryant]

And Welsh.

[Andrew Griffith]

And Welsh, and from other parts of this wonderful kingdom.

This Government, as the previous Government, have by and large got the importance of the wonderful Scottish whisky industry, but it is important to do anything that can be done to help. Of course, the way that one reduces taxes over time is by making tough decisions on Government spending, which would be one of the key things the Conservatives would do in order to be able to lower those taxes.

The hon. Member for Stoke-on-Trent Central (Gareth Snell), who is no longer in his place, made an important point about the protection of ceramics and related industries, such as our brick and energy-intensive chemicals industries, which are all important. A trade deal, however wonderful it may or may not be, will do nothing to help the ruinously high energy costs faced by the ceramics, brick and chemicals industries, along with so many others. This debate is not about that issue and it is not the responsibility of the Minister, but it is nevertheless an important factor; if we are going to lower barriers and frictions so that we can boost trade, increase the prosperity of our citizens and grow our economy, that absolutely must involve the full stack, including energy and what one does about employment law and regulation.

[Andrew Griffith]

The document produced by the Select Committee lays out the impact for defence, modest as I believe it is. I will leave it to those on the Government Front Bench to answer my right hon. Friend’s important question about security—

[Chris Bryant]

rose—

[Andrew Griffith]

I will happily give way to the Minister.

[Chris Bryant]

I wonder if I could talk through the hon. Member for Arundel and South Downs (Andrew Griffith) to the right hon. Member for New Forest East (Sir Julian Lewis): our export control system for any exports from the UK into any other country in the world bears in mind diversion from one country to another. That is a very important part of what we look at. The FTA does not affect that process at all.

[Andrew Griffith]

I hope that my right hon. Friend is reassured to a degree by the Minister’s response. I will move on now—you will be pleased to know, Madam Deputy Speaker, that my speech is not as comprehensive as the work of the Select Committee.

I would be grateful if the Government could clarify a few points about the position on food and agricultural products. There are protections for sugar, chicken, eggs and pork, and that has been welcomed by producers. However, there are concerns from the British dairy industry about opening the market, which describes the deal as a one-way street: dairy is excluded from UK exports to India, yet tariffs on Indian dairy coming into the UK are removed.

[Chris Bryant]

I will try to keep up as we are going along, if that is okay. On dairy, I understand the point the hon. Gentleman is making; it has been made to me before and was also made in Committee. However, I am not aware of any Indian cheese company that has been able to export into the UK, as it would still need a licence. We were very keen to secure arrangements so that we were not abandoning any of our food standards, which obviously have to be met before any export can come here.

[Andrew Griffith]

I will try to leave the Minister with a short list of questions, rather than going through each and every one as we go.

Notwithstanding what the Minister has just said—perhaps we can revert to this later—there are also concerns about the Government’s hypocrisy in respect of pesticides and animal welfare, particularly with regard to crustaceans. I do not know whether the Minister has quite the same degree of expertise in crustacean welfare and in particular prawn eyestalk ablation, which sounds more trivial here than it would to the prawn whose eyestalks are being ablated. Those concerns are particularly relevant because despite the Government publishing and vaunting their virtue in terms of animal welfare, these poor blinded prawns seem to be victims under this deal. [Interruption.] I would be happy to give way to the Minister on prawn eyestalk ablation, which is an important point; perhaps, on winding up, he could make a more general point on trade deals and how the Government will protect our animal welfare and food safety standards.

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[Andrew Griffith]

My hon. Friend puts the point in a better and more informed way than me. It is important, and it is for the Government to set out very clearly how they propose to maintain or create a level playing field on these matters so that producers operating here to British standards are not disadvantaged, while we all get the benefits of trade and prosperity that I spoke of.

[Chris Bryant]

rose—

[Andrew Griffith]

I will defer to the Minister on prawn eyestalk ablation.

[Chris Bryant]

We are all joking about it, but this is a serious matter. The centre of the point is that whatever the tariffs may do, companies can only sell products in the UK that meet our food standards—precisely the point made by the hon. Member for Ruislip, Northwood and Pinner (David Simmonds). In order to ensure that is true, companies have to have a licence to sell in the UK. In addition, all Indian aquaculture products are currently subject to intensified controls with 50% consignment checks at the border. This is one of the many areas where we need to ensure that we protect our producers in this country, who are abiding by very high standards. I could apply that to all the different agriculture and foods that we are talking about, as well as to aquaculture.

[Andrew Griffith]

I thank the Minister for that intervention; I drew some comfort from it, but we will have to see the detail of the exact crustacean protections we end up with.

Finally, there is one glaring area that—even beyond the missing benefits to our important services industry—was a point of difference in the negotiations that we conducted and a reason why, when we were in government, we did not consummate that deal and why the negotiations remained outstanding. The Leader of the Opposition has been very clear about this: when she was leading the negotiations, she refused to sign this deal because of the double contributions convention. The Minister will know precisely what I mean by that.

We still have not seen the detail of that convention, and every Member of the House should be concerned. This is a very limited part of the process of scrutiny of trade deals—the rights of Parliament are perhaps not fully discharged just by the CRaG process. However, we have not even seen what the Minister referred to earlier as the HMRC agreement on this. What it means in substance—I will choose my words very precisely—is that Indian workers who come here to work will not pay a penny in British national insurance contributions, and neither will their employers.

The Government decided that they would open this deal—this two-tier tax system for India—at precisely the same time as hiking their jobs tax on every single British worker. I am happy to be rebutted or corrected, but by my calculations, under this agreement it could be up to £10,000 a year cheaper to hire a software developer on an average British salary from India than to hire someone from Britain for the same role, as employers will not be liable for those national insurance contributions. These are big numbers, and this will mean a big disadvantage to hiring an identical British worker at a time when there are 9 million people of working age not in work and when unemployment is rising—in fact, it has risen every month under this Government.

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[Andrew Griffith]

I am glad to hear agreement across the House on the desire not to have a two-tier system. We all understand the need to pay our taxes to support our public services, but it will not feel right if two people are sitting cheek by jowl, side by side in the same place of employment—a factory or other work environment—but are contributing at a very different rate to the Exchequer for the public services that we all support.

[Chris Bryant]

Will the hon. Member give way?

[Andrew Griffith]

Let me finish my point, and then there will be plenty of opportunity for interventions. I will not anticipate the Minister’s point, but there are other agreements such as this in place—I want to be full and clear about that.

There are social security agreements where contributions are both paid in and taken out. We have them with the European Union, for example. They are a long-standing feature, and they were under previous Governments. Again, to be very clear and open, we also have a limited number of agreements like this with some selected other countries, including the high-skilled economies of Japan, South Korea and Chile and, to some degree, Canada. But we do not have an agreement like this of any sort with a mostly English-speaking nation of 1.5 billion people, all of whom would potentially be better off availing themselves of this arbitrage—this two-tier system—under this deal.

Astonishingly, this part of the deal was left out of UK Government communications, so not only do we have two-tier substance in terms of the economics of the deal; we also have two-tier communications. The Indian Government boasted about this element as a significant and attractive feature of the deal, but there was not a single mention of it in the UK Government communications. That, in and of itself, should send alarm bells ringing about this two-tier tax deal.

[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.

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[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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[Stephen Gethins]

The hon. Member is right. The UK as a second-tier power has left itself poorer, as the Minister, to his credit, has acknowledged, as did the hon. Member for Witney (Charlie Maynard); it is just a pity that the Liberal Democrats do not agree with me and the hon. Member for Dewsbury and Batley (Iqbal Mohamed) that we should rejoin.

[Chris Bryant]

rose—

[Stephen Gethins]

I did say that the previous intervention would be my last, but I really ought to give way to the Minister.

[Chris Bryant]

If the hon. Member is in favour of collective bargaining, surely he is in favour of Scotland doing its collective bargaining within the United Kingdom.

[Stephen Gethins]

But if only we were listened to! We feel about as listened to as the leader of the Scottish Labour party at the moment, and that is not terribly well listened to. I am a great believer in a 21st-century model of Union based on the treaties—one that listens to its different member states, makes its members richer and gives them more rights, rather than a pretty out-of-date and outmoded 18th-century version of the Union. I am glad the Minister has given me the opportunity to make that point.

The right hon. Member for Birmingham Hodge Hill and Solihull North (Liam Byrne) rightly talked about services and other issues. The EU has negotiated higher levels of freedom of movement. On services—again, it would be remiss of me not to talk about the higher education sector, and I wonder whether the Minister will mention that when he sums up. He will be aware of the huge impact that trade with India has on our higher education sector. In Dundee, for example, there was a huge amount of student recruitment from India—more than from the entire European Union, although post Brexit that fell off and we were left more isolated. There were 810 Indian students in 2022-23, and 365 in 2024-25—a decrease which led to that university’s significant financial crisis. It is not alone in that within the higher education sector.

The former principal, Shane O’Neill, talked about the “negative impact” of UK policy, and Universities Scotland has said that the loss of dependants and the “toxic” rhetoric around migration in the UK have had detrimental impact on the higher education sector. I refer the House to my entry in the Register of Members’ Financial Interests; I still do a little bit of teaching at the University of St Andrews, and I have to mention the value that comes from having more international universities. It is not just about the value that comes from the income; it is the value to the richness of the teaching regime, through our students having access to others from across the world, and to our research. It is exceptionally important. I wonder whether the Minister will touch on that point, because UK policy has had a hugely detrimental impact on my constituency, particularly in relation to the financial challenges faced by the University of Dundee, and I am truly sorry to say that we saw the toxic legacy of the Conservatives’ migration policy continued by the Labour party in government.

The right hon. Member for Birmingham Hodge Hill and Solihull North spoke about scrutiny. If we were Members of the European Parliament we would get full access to the trade agreements, so will the Minister look at the way that the European Parliament deals with issues such as voting rights, scrutiny and publication, and see what examples of good practice the UK Parliament could pursue?

I am glad that the hon. Member for West Dunbartonshire (Douglas McAllister) has not taken up the offer of being across the road at No. 10 and that he is here. I am pleased that he raised his constituent, Jagtar Singh Johal —he made a great case and, if he does not mind me saying, continues the good work done by Martin Docherty-Hughes. I think we all want to wish Mr Johal a happy birthday, but we all sincerely hope that he will have a happier birthday this time next year. I thank the hon. Member for his work, and I add my voice to those asking the Minister to respond.

Finally, a number of hon. Members have raised the question of Russian oil. Will the Minister set out what is happening with Russian oil, what conversations were had with Indian officials and whether there are any refineries that could be targeted as part of the broader sanctions process?

--- Later in debate ---

[Chris Bryant]

By leave of the House, Madam Deputy Speaker, I will respond to the debate. I know that you were once in this job, so if I get anything wrong, please feel free to intervene and correct me. I am going to crack through as many as possible of the questions that have been put to me. I know that hon. Members like to hear answers, so I will try to answer their questions as fast as I possibly can.

As always, it was a great delight to see the hon. Member for Arundel and South Downs (Andrew Griffith) at the Dispatch Box. He had a bit of a rant about Brexit and how much he is still in favour of it—he will probably be the last person still in favour of Brexit, just as he is the last person still in favour of the Truss Budget, because he helped write it. He made a legitimate point about services. Of course we would like to go further on services, but there are two things that I would say to him. First, we have secured significant advantages in relation to telecoms and construction services, and I have already referred to the better deal that we have had on procurement than the European Union. Secondly, we have been guaranteed most favoured nation status in 40 different sectors, including accounting and auditing services, architectural services, engineering services, higher education, building cleaning services, photographic services, packaging services, convention services and interior design services.

That goes to the point made by the hon. Member for West Worcestershire (Dame Harriett Baldwin) about whether this is going to be a living process. We do not need to return to the negotiating table, because we have a structure built into this FTA that enables us to take things forward. In fact, the first review of the deal will happen on the date it comes into force—as I said earlier, I hope that will be before the summer.

[Matt Rodda (Reading Central) (Lab)]

Will the Minister give way?

[Chris Bryant]

I am keen not to give way again, because there is not much time and I have to answer all the questions that I have already been asked.

Turning to legal services, of course we would have much preferred to have been able to secure legal services as part of this deal. We have a very strong legal services sector in the UK—it is excellent. I was with the head of the Law Society in Riyadh last week, celebrating some of the changes and opportunities that are happening in Saudi Arabia, for instance. The difficulty is that, as the Indians made very clear throughout the whole of the negotiating process, law is a noble profession. It is very specifically understood as such within the Indian constitution, so that would have required significant changes to primary legislation in India, and that was not something we were able to achieve.

Similarly, we would have preferred to have been able to secure a bilateral investment treaty, but we stand ready to start that process whenever India would like to do so. I am glad that we have a digital trade chapter, because so much of the trade we do internationally is now digital, and lots of other arrangements do not end up with that provision.

On services, the way we transacted this deal means it is supported by the Federation of Small Businesses, HSBC, Standard Chartered, EY, TheCityUK and Revolut, and I do not think they think of the deal as “soggy poppadoms” at all; I think they think of it as a fine tandoori.

My hon. Friend the Member for Bradford East (Imran Hussain) and several other Members referred to Kashmir, and the hon. Member for Dewsbury and Batley (Iqbal Mohamed) gave us some shocking stories about the situation there. I was once the curate in High Wycombe, which has a large Kashmiri population. They have felt many of the issues relating to Kashmir ever since the 1940s. It has been a long-standing British position that India and Pakistan need to come to a settlement of their agreement. For the purposes of the CETA, the core text chapters define India’s territory as set out in India’s constitution, but emphasise that that is without prejudice to territorial sovereignty or compatibility with international law.

An important point that nobody has referred to is that Pakistan enjoys preferential tariff rates when trading with the UK under the developing countries trading scheme, which offers significant preferential access. Approximately 94% of Pakistani goods are eligible for 0% tariffs, and that runs out for India three years after the FTA enters into force. The deal is not silent, as it were, on the relationship between the two.

Some Members have said that there is nothing in the FTA about human rights. First, that is not true; there are provisions. It is also not true to say that none of it is legally binding. The whole agreement is legally binding, and review processes are built into it in a way that makes it possible for us to monitor human rights. I have to say, the EU deal does not enter into human rights issues either—traditionally, it does not. We want every element of how we engage with another country to reflect the values we want to protect, including opposition to the death penalty, to forced labour and to so many other things.

[Stephen Gethins]

Will the Minister give way?

[Chris Bryant]

I will not, if the hon. Member does not mind.

A lot of that toolkit lies outside trade. It lies with the human rights monitoring that our high commission in India does regularly. We raise all the individual issues that have been referred to.

[Stephen Gethins]

rose—

[Chris Bryant]

I will give way to the hon. Member, because I can never resist him. We used to be on a Select Committee together.

[Stephen Gethins]

I have great respect for the Minister, but he talks about the EU deal not covering human rights. We are all covered by the European convention on human rights, but that umbrella does not exist for countries such as India. That is important, especially because the Minister’s party and my party are committed to remaining within that framework.

[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.

[Katie Lam]

Will the Minister give way?

[Chris Bryant]

I will not, as I have only two minutes.

The Chair of the Select Committee made lots of good points. He referred to the Constitutional Reform and Governance Act 2010 and said that a votable motion was guaranteed by the then Minister in 2010. I was the Minister, and I am not sure that I then guaranteed a votable motion, but I take his point about greater scrutiny. When I come to talk about the Office of Trade Sanctions Implementation, I hope we will be able to deal with some of the other issues to which he referred.

The hon. Member for Arbroath and Broughty Ferry (Stephen Gethins) referred to higher education. I am delighted to say that higher education is one of the things that MFN applies to as part of the deal. I was proud that the Prime Minister was able to open two new higher education campuses in India when he visited in October. The hon. Member makes a fair point about the European Parliament’s good practice on trade deals, which I will reflect on.

I did not agree with everything that the hon. Member for Birmingham Perry Barr (Ayoub Khan) said, but I understood the sentiment with which he said it. I just make the point to him that the whole agreement is legally binding. That is why I am glad that we have secured chapters in our deal that have not been in any others.

The hon. Member for Dumfries and Galloway (John Cooper) said that Government figures seemed too low. One of the figures is probably too low, and that is because we tried to err on the conservative side. In particular, some of the figures presume that we will not be doing any additional trade as a result of the FTA, but I think that we will. I think we could say that we will do better.

The hon. and learned Member for North Antrim (Jim Allister) said that it was an enormous irony for a remainer such as myself to be standing here and proclaiming this. The thing is, I deal with the world as I find it, not as I would wish it to be. I cannot unmake the past, but I can make sure that we exploit the present to the best benefit of British business, and that is what this trade deal does.

Question put and agreed to.

Resolved,

That this House has considered the UK-India Free Trade Agreement.