Rishi Sunak rules out a quick-fix trade deal with India

UK Prime Minister Rishi Sunak has ruled out a quickfix trade deal with India making it impossible to get an agreement over the line in time for this weeks G20 summit in Delhi ndash and possibly even by next yearrsquos elections the media reportedMultiple sources close to the negotiations have told The Guardian the UK prime minister has rejected the idea of an early harvest deal which could have lowered tariffs on goods such as whisky but would not have dealt with trickier subjects such as professional servicesThe decision has scuppered any chance of an agreement being struck this week before the prime minister meets his Indian counterpart Narendra Modi in the Indian capital this weekendMany now believe a deal is impossible before both countries hold elections in 2024 although some in government still believe it could be reached later this year The Guardian reportedIt means the prospect of a UKIndia free trade agreement long held up as one of the biggest possible opportunities for Britain after Brexit remains distantOne government source said There was talk last year of a deal by last Diwali but that was only going to happen if it was a shallow deal based around a limited number of goods Kemi Badenoch the trade secretary and Rishi Sunak have decided they dont want to go down that route and so have taken a deadline off the tableAnother person close to the negotiations added India wants to do an early agreement on goods but the risk is that instead of being the start of a wider trade agreement that becomes the end point and the UK doesnrsquot get any of the more fundamental things it wantsThose close to the talks say agreements have been reached in some key areas such as the need for India to cut tariffs on whisky and cars and for the UK to remove those on textiles and other goodsThe Sunday Times reported earlier this month that India was prepared to reduce tariffs on scotch whisky by a third to 100 per cent in return for tax breaks for Indian workers in the UK ndash though British officials say exact figures have not yet been agreedThis might have been enough to sign a slimmeddown trade agreement this week according to sources but Sunak and Badenoch have rejected such an idea for fear it will make the goal of a more wideranging deal impossible The Guardian reportedThere are still significant areas of disagreement when it comes to the comprehensive deal under negotiationIndia has long pushed for more visas for Indian students and for employees of Indian companies The Home Office does not want such terms being placed within the trade agreement itself although sources indicate a separate deal could be reached on immigrationThe UK says it has already shown flexibility on visas more than doubling the number of work visas it gives to India each year since the country left the EUBut the government is reluctant to change the rules on who can enter especially in the case of students The Guardian reportedHowever there are also more fundamental issues facing reaching an agreementThe UK is pushing for greater intellectual property protections for companies trading in India especially in the pharmaceutical industry where western companies fret about their drugs being produced much more cheaply by Indian laboratoriesMeanwhile India wants to limit the proportion of UK goods that can be produced outside the UK as a way of preventing other countries benefiting from the agreement indirectly The Guardian reportedThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever