Rishi Sunak has ruled out a quick-fix trade deal with India, making it impossible to get an agreement over the line in time for this week’s G20 summit in Delhi – and possibly even by next year’s elections.
Multiple sources close to the negotiations have told the Guardian the 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 services.
The 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 weekend.
Many 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. It means the prospect of a UK-India free trade agreement, long held up as one of the biggest possible opportunities for Britain after Brexit, remains distant.
UK ministers have long held up a trade deal with India as one of the great potential prizes of Brexit.
Credit: theguardian.com
