India strikes trade agreement with Britain

Starmer: Deal ushers in 'new era' of trade

- ESHE NELSON STEPHEN CASTLE ALEX TRAVELLI

Britain and India agreed to a trade deal Tuesday, strengthening economic ties between two of the world's largest economies amid President Donald Trump's upheaval of the global trade system.

The deal, which the British government said would increase bilateral trade by £25.5 billion ($34 billion), comes three years after the negotiations began. Intense talks to finalise the outstanding issues took place last week between Jonathan Reynolds, Britain's business and trade secretary, and Piyush Goyal, India's commerce minister.

The British government said India had reduced 90% of tariffs on goods, and most of those would become tariff-free within a decade. Duties on British whiskey and gin would be halved, to 75%, and eventually be lowered to 40%. India will also reduce its car tariffs, which exceed 100%, to 10% under a quota. Britain, in turn, reduced tariffs on clothes, footwear and food products, including frozen prawns.

Last year, trade in goods and services between India, the world's fifth largest economy, and Britain, the world's sixth, totaled £42.6 billion, according to British data.

The trade agreement comes as many countries are seeking to bolster alliances after Trump sent shock waves through the global economy by announcing, and then pausing, high tariffs on dozens of countries. The policy whiplash has created uncertainty that is expected to dampen investment and economic growth around the world.