uk and india sign comprehensive economic trade agreement
On 24 July 2025 the United Kingdom and the Republic of India signed the Comprehensive Economic and Trade Agreement at Lancaster House, London. The signing followed fourteen formal negotiation rounds that began in January 2022. The treaty eliminates customs duties on ninety‑five percent of tariff lines once fully implemented. Textiles, automotive parts, Scotch whisky and selected agricultural goods receive immediate duty‑free status. The accord also establishes a fast‑track business‑mobility scheme for intra‑corporate transferees and young professionals. Official copies of the agreement were lodged simultaneously in New Delhi and London for parliamentary scrutiny.
The text contains chapters on digital trade, intellectual property, government procurement and sustainable development. A mutual‑recognition annex provides for professional qualifications in architecture, accountancy and medical services. E‑commerce provisions prohibit customs duties on electronic transmissions and protect source code. The investment chapter outlines a binding dispute‑settlement mechanism and offers most‑favoured‑nation treatment to covered investors. Rules‑of‑origin protocols allow up to forty percent non‑originating content in specified goods, supporting integrated supply chains. A joint committee chaired by both trade ministers will oversee implementation and meet within ninety days of entry into force.
Both governments aim to complete domestic ratification by the first quarter of 2026. The United Kingdom will present the agreement to Parliament under the Constitutional Reform and Governance Act for at least twenty‑one sitting days. India will submit the pact to the Lok Sabha and Rajya Sabha for debate and approval. Provisional application covering tariff preferences may begin once the UK notifies India of completed statutory steps. A tariff schedule published with the treaty shows staged reductions of ten percentage points per year for sensitive product lines. Services market‑access commitments will start on the first day of the second month after ratification.
According to statistics released at the signing, two‑way trade in goods and services reached US $28 billion in 2024. Annual average growth over the previous five years stood at six percent. The agreement establishes fifteen specialised sub‑committees, including logistics, automotive cooperation and IP enforcement. A working group on sanitary and phytosanitary measures will review plant‑health standards within six months. The treaty sets a goal of doubling bilateral trade to US $55 billion by 2030. Both sides will publish tariff‑utilisation reports annually starting one year after provisional application.
