Britain will be able to increase its exports to India by more than £2 billion per year after Brexit by cutting EU red tape, a new analysis has found.
The UK currently faces significant tariffs on its trade with India because of the European Union’s failure to agree a free trade deal. The deal has been held up for a decade by European Union regulations on intellectual property and data protection, with which India is refusing to comply.
But after Britain leaves the EU, the deal can go ahead because British trade negotiators regard the disputed EU rules as unnecessary.
A report by the Commonwealth, whose 52 member nations include India and the UK, says that Brexit will present a significant “opportunity”.
The report, titled Brexit: Opportunities for India, says that the UK and India can secure a far-reaching deal which will see the value of British exports to India rise from £4.2bn to £6.3bn, an increase of £2.1bn, or 33 per cent.
Imports from India to the UK will rise by around £1 billion, meaning the UK’s balance of trade will be improved.The report says:
“Given the slow pace of negotiations over [a trade deal] with the EU, Brexit provides a fresh opportunity to India to strengthen its economic relationship with the UK through an India–UK trade and investment agreement.”It suggests that the UK will be able to show more “flexibility” than the EU on red tape and increase trade between the two nations as a result.
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