India-UK Trade Negotiations

David Linden Excerpts

Tuesday 22nd February 2022 Westminster Hall

[Bob Blackman]

I have had the opportunity of sampling Irish whiskey on many occasions.

[David Linden (Glasgow East) (SNP)]

Will the hon. Gentleman give way?

[Bob Blackman]

Indeed, I will give way.

[David Linden]

I am grateful to the hon. Gentleman for giving way. I think he has given me this opportunity before gets himself into a bit of a hole. First, he had a pop at independence, only to then turn it into saying how successful Ireland is. I am grateful to him for that, but I thought I would give him the opportunity at least to try a glass of water, if not some whisky.

--- Later in debate ---

[David Linden (Glasgow East) (SNP)]

It is a pleasure to follow my hon. Friend the Member for West Dunbartonshire (Martin Docherty-Hughes). I too put on record my support for Jagtar Singh Johal, who is a son of the Rock. I congratulate the hon. Member for Harrow East (Bob Blackman) on securing and opening this important debate.

As chair of the Scotch whisky all-party parliamentary group, I understand the importance of securing a good trade deal with India, especially for the Scotch whisky sector. The industry breathed a huge sigh of relief at the removal of tariffs for Scotch whisky in the United States. However, it only came after significant effort on the part of the APPG, the Scotch Whisky Association and countless industry stakeholders. The industry continues to face yet another barrier at this time in India, where Scotch whisky faces an eye-watering 150% tariff.

India is the world’s largest whisky market, which provides huge potential for the entire Scotch whisky industry. However, the fact that Scotch exported to India is subjected to that 150% tariff is a massive blow to the sector. Because of the steep tariff, Scottish produce makes up only 2% of India’s whisky market. Despite only making up this very small percentage share of the market, the value of Scotch whisky sales continues to rise. Whisky sales rose from less than £60 million in 2011 to more than £150 million in 2019. Just imagine the opportunities for what is, I would argue, our greatest export brand if the 150% tariff were reduced. The Scotch whisky industry could rise to its true potential in India.

A reduction in the tariff on Scotch whisky would grow single malt exports by £1.2 billion over the next five years and create 1,300 jobs. In my Glaswegian constituency, I am privileged to have a bottling hall, a maturation warehouse and a number of cooperages. There is clearly an argument that this investment has an impact on jobs, not just in rural parts of Scotland, but in urban constituencies like my own.

India is already the third largest market by volume. The reduction of tariffs could push it to second place, behind only the United States of America. It would see an increase of £3.4 billion in revenue to the Indian Government. There is a huge potential for the market to grow if tariffs were reduced. In 2019, Scotland only constituted 6.5% of the UK’s overall trade with India, compared to London at 21%, the south-east of England at 14% and the north-west of England at 9%. There is clearly an opportunity for Scotch whisky, if only it were not hindered by these incredibly high tariffs.

The whisky market in India is a wholly untapped, golden opportunity for Scottish distilleries. Scotch whisky plays a crucial role in the success of Scotland’s food and drink sector and our economy, but the industry has been dealt a triple whammy recently, with the economic impact of tariffs—particularly in the USA—as well as Brexit and the pandemic. Going forward, we need to see continued and intensified support for the industry. One step could be to address the extortionate tariffs in India. I hope that my good friend the Minister, and the Government, will address this in conjunction with the APPG, so that together we can support Scotch.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Harrow East (Bob Blackman) for introducing the debate in a consistent, helpful way. I am pleased to follow the contributions of the hon. Members for Glasgow East (David Linden) and for West Dunbartonshire (Martin Docherty-Hughes). The hon. Member for West Dunbartonshire knows that I have supported him in the campaign that he has consistently been involved with over the years and in every one of his debates, and I support him here today in urging the Minister to do something. It may not be too late for that plea to the Minister and to the Government to do something to help the hon. Gentleman’s constituent, who has been very wrongly maligned, intimidated, tortured and injured, and his family.

Holding each other accountable to a higher standard is a hallmark of any good relationship. Ours with India should be no different, which is why what the hon. Gentleman said is so important. There has been colonial and historical contact, and that has drawn us together over the years. I see—we all see—India as a friend and the close relationship between the UK and India is well known. A long history of international co-operation and trade has been central to much of that. Our trading relationship is significant and, therefore, I believe we need to have a relationship that draws on our concerns in this country. I will lay out some reasons for that.

The UK is the third biggest investor in India, and in 2020 India became the second largest investor in the UK. Our relationship is growing from both sides and that is important. During the covid-19 pandemic, trade with India secured vital personal protective equipment for our frontline workers, and helped to secure the production and roll-out of the Oxford-AstraZeneca vaccine on such a mammoth scale. The history and our relationship over the last 100 years—especially over the last two—have been significant and important.

It goes without saying that the UK-India relationship is mutually beneficial, and that underscores why a trade deal with India is and should be such a priority. However, in trade negotiations we should not ignore the values central to a good relationship for the sake of a better trade deal. The close relationship between the two countries necessitates that our Government and our Ministers raise the issue of human rights concerns in negotiations with India. Will the Minister confirm that the issues are constantly raised with India? I am quite sure that the answer will be yes, but will the Minister confirm that in Hansard, so that we have it to refer to for the future?

I am sad and sorry to say this, but in recent years India has seen escalating violations of freedom of religion or belief. Churches and Christian schools were targeted during the Christmas season just past. Bibles were set on fire, services were disrupted, a statue of Jesus was torn down and the crowd shouted, “Death to missionaries”. Really? In this modern world? We have this relationship with India, but the Indian Government have not acted on those issues. In 2013, the Open Doors world watch list ranked India as 31st in the global list of the top 50 countries where Christians faced the highest level of persecution worldwide. Last month, in its latest world watch list, Open Doors ranked India in 10th position; it has risen from 31st to 10th. The research sounds the alarm on the escalation of freedom of religion or belief violations in the country—not just against Christians, but against other faiths and beliefs too. I will quickly speak of them.

Lynchings and hate speech targeting Muslims in India have repeatedly made headlines. In December last year, there were open calls for genocide against Muslims at a Hindu Mahasabha party conference. That should never happen at any Government conference or any party conference. The marginalisation of Muslim women was evidenced last month when schools and colleges in the Indian state of Karnataka banned the Muslim headscarf. Indeed, Malala Yousafzai has since responded to colleges forcing Muslim girls

“to choose between studies and the hijab”—

in short, to choose between their right to education and their right to freedom of religion or belief. That must stop. Can the Minister give some indication of how we are encouraging India to do just that?

[David Linden]

I am glad the hon. Gentleman has touched on that. I discussed the issue in a meeting with the Prime Minister. Thankfully, there was an undertaking that he would raise the issue. Does the hon. Gentleman agree and accept that a lot of the behaviour stems directly from Prime Minister Modi and the various thugs in his party who think that such behaviour and intolerance towards people of a different faith is somehow normal? We need to send a very strong message from London to the Indian Government that we will not accept such behaviour and that we will raise it during the negotiations.

[Jim Shannon]

I agree that there is an onus on Prime Minister Modi to speak out. Unfortunately, we have not seen much evidence of that. If he speaks out, there should be a reaction, and those who listen to him might respond in a positive fashion, but that has been lacking so far. However, I hope that we can have such a response.

I believe that there is hope and I want to reflect on that as well. Human rights provisions in international trade deals have become the norm since the early 1990s. More than 75% of the world’s Governments now participate in preferential trade agreements with human rights provisions, and we should participate as well. European Union international trade agreements include human rights clauses and a general obligation to uphold human rights as set out in the UN universal declaration of human rights, so what are we doing to make sure that that is upheld?

Leaving the European Union has enabled us—I say this with great respect to colleagues on my left-hand side, the hon. Members for Glasgow East and for West Dunbartonshire—to pursue an independent trade policy. It is vital, however, that we do not drop human rights provisions in that endeavour and that we appropriately use free trade agreements to pursue our broader international objectives.

The UK has a history of defending human rights across the world and is a leader in protecting the fundamental right of freedom of religion or belief. I recognise the good work that our Government have done on these issues, but there are occasions when we have to speak up in a gentle but firm fashion to say that things are not right. The right to freedom of religion or belief is a gateway right and a strong indicator of the future trajectory of the human rights landscape in a country. That is where the focus must be in India, so we seek that change. Religious or belief minorities are often the first groups to be targeted before other rights are eroded, so the right to freedom of religion or belief is well placed to be an indicator of human rights provision in a trade deal with India. I am confident that the Minister’s response will endorse our concerns and deal with how we can make things better.

I am mindful of the time, so I will conclude by urging the Government to ensure that human rights provisions are included in the text of future trade deals with India, that those provisions include robust monitoring and enforcement mechanisms, that the right to freedom of religion or belief is part of that framework, and that the Prime Minister of India takes the lead on this issue. If we hope to nurture a sincere relationship with India—I hope we do; I want us to—Government silence on the matter cannot be tolerated.