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BUSINESS & TRADE JULY 03, 2026 | The Indian Eye 36

India Bets on UK Trade Pact as US

Negotiations Face Hurdles

New Delhi sees the India-UK trade agreement as a near-term economic win while a broader

deal with Washington remains complicated by tariffs, trust issues and geopolitical concerns.

OUR BUREAU
London / Mumbai / Washington, DC

ndia is entering a crucial phase
in its trade diplomacy, with poli-
Icymakers expressing confidence
about the benefits of the newly con-
cluded trade agreement with the
United Kingdom even as negotiations
with the United States continue to
face significant obstacles.
Speaking during the India Global
Forum’s UK-India Week 2026 in Lon-
don, Union Commerce and Industry
Minister Piyush Goyal described the
India-UK Comprehensive Econom-
ic and Trade Agreement (CETA) as
a landmark pact that would deepen
economic engagement between the
two countries and open fresh oppor-
tunities for businesses.
The agreement comes at a time Union Minister of Commerce & Industry Piyush Goyal during an interaction at the India Global Forum’s UK-India Week 2026:
when India is actively expanding its Capital Frontiers, in London on Thursday (@PiyushGoyal X/ANI Photo)
network of economic partnerships
to strengthen supply chains, attract more complex picture. ed,” she said. Aamer said.
investment and diversify export mar- Recent meetings between Union One of the biggest sticking points She also noted that geopolitical
kets. According to Goyal, the trade Commerce Minister Piyush Goyal remains tariffs. India is seeking great- considerations have influenced In-
pact will further advance the Com- and US Trade Representative Jamie- er certainty regarding future tariff dia’s negotiating posture. According
prehensive Strategic Partnership be- son Greer in New Delhi produced arrangements and wants preferential to Aamer, New Delhi has become
tween India and the United Kingdom what both sides described as signifi- treatment compared with competing more assertive while facing domestic
while fostering greater trade, invest- cant progress. However, trade experts exporters. New Delhi is also seeking pressure to secure a balanced and fair
ment, innovation and collaboration. caution that major differences remain assurances that Washington will re- agreement.
“Highlighted how the India-UK unresolved and could delay the con- frain from imposing additional tariff If an interim agreement is
Comprehensive Economic and Trade clusion of a comprehensive agreement. increases after an agreement is signed. reached, it could help revive momen-
Agreement (CETA) will further ad- Wendy Cutler, Senior Vice Pres- “India very much wants a prefer- tum in a relationship that has faced
vance the Comprehensive Strategic ident at the Asia Society Policy In- ential tariff edge over its competitors, strains in recent months. “It would
Partnership between our two nations stitute (ASPI), said the negotiations so it is in no hurry to conclude until certainly help the otherwise strained
and unlock new opportunities across have reached a difficult stage despite there is further clarity on tariff rates US-India ties and lend some momen-
sectors,” Goyal said. recent advances. and product exclusions,” Cutler said. tum to other areas of cooperation,”
The minister noted that the “Despite substantial progress “Moreover, it is seeking assurances Aamer said. “Both countries will ben-
agreement would allow businesses made in recent meetings, concluding from Washington on no further tariff efit from a comprehensive deal.”
in both countries to deepen partner- a trade deal with India is proving illu- hikes, which most likely is a bridge too The contrast between the two ne-
ships, expand commercial opportuni- sive,” Cutler said. far for the Trump team.” gotiations highlights India’s evolving
ties and contribute to shared growth According to Cutler, both coun- Even so, analysts believe both trade strategy. While the UK pact is
and prosperity. tries continue to defend their own pri- governments remain committed to poised for implementation and prom-
Goyal is in London on a three- orities and red lines. She pointed to a reaching at least an interim arrange- ises immediate commercial gains, dis-
day visit aimed at finalising prepara- growing trust deficit that has compli- ment. Farwa Aamer, Director of cussions with the United States remain
tions for the implementation of the cated efforts to bridge remaining gaps. South Asia Initiatives at ASPI, said tied up in disputes over tariffs, market
India-UK CETA and the Double “Each side has its own priorities sustained engagement indicates that access and policy certainty. As India
Contribution Convention (DCC), and redlines which continue to pre- an agreement remains achievable de- broadens its trade partnerships, the
both of which are scheduled to come vent a successful conclusion. More- spite lingering uncertainty. successful rollout of the UK agreement
into force on July 15, 2026. over, developments over the last year “The sustained effort from both may offer a model for future econom-
While optimism surrounds the have produced a serious trust deficit sides shows promise toward the deal, ic engagements even as negotiators
UK agreement, India’s trade discus- on the part of Delhi, which makes but not without a fair share of speed continue the harder task of securing
sions with the United States present a wrapping things up more complicat- bumps and lingering uncertainty,” a breakthrough with Washington.

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