UK-India Free Trade Agreement

Graham Leadbitter Excerpts

Monday 9th February 2026 Commons Chamber

[Andrew Griffith]

Well, I was going to be generous to the Government and say something slightly positive. My hon. Friend is absolutely right that Governments of all flavours could do an infinitely better job of listening to businesses. They are the people at the frontline in the real world. His constituents have very deep links to the economy of India and it represents a real opportunity. We support the deal, but the only tone today is one of slight regret about the missed opportunities. Of course, it is easy for a Government to get a deal if they take the deal being offered, rather than negotiating and seeking to improve that deal. Therein is some of the difference between the approach of our Government and—[Interruption.] Well, we did not get it because we were not willing to take the deal that was on the table. We were holding out and negotiating for a better deal.

Let me give the Minister an example of that—a quite surprising example, in many ways—which is the complete omission of a legal services sector deal from this agreement. The Law Society called that

“a missed opportunity for a significant breakthrough”.

The chair of the Bar Council said it was

“a once-in-a-lifetime opportunity”

missed. How ironic that a Government of lawyers, led by lawyers and stuffed full of lawyers, could not get even that aspect of the agreement across the line. The deal places a 36-month target—I hope it is a target, not an aspiration or ambition—for the conclusion of a mutual recognition of a professional qualifications agreement. That would be a great opportunity. Our services sector would welcome that, but I hope the Minister will agree with me that not to achieve that now would be to snatch defeat from the jaws of victory. It would be a humiliation for this Government and I hope he will address, when he winds-up, the precise plans to secure that agreement.

In a similar vein, the bilateral investment treaty that was planned to be agreed at the same time—it was in the original objectives for our deal—has also not been delivered. This is the deal that was offered, rather than the deal that could have been negotiated and improved. That leaves British investors exposed to sudden policy changes, unfair treatment and expropriation. I could, of course, be talking about the policies of this Government, but in this case I am talking about the Indian Government and the jeopardy for some significant British investors. Again, this is another missed opportunity—a deal that we support but that could have been better. I understand that the chief negotiator on the deal has confirmed that, sadly, there are no plans to return to the table to get an investment treaty across the line, but I would be very happy to stand corrected on that. Perhaps that point could be addressed in the Minister’s winding-up speech.

As we heard from the Minister, on day one the deal will grant Indian exporters of such wonders as textiles, gems and engineering goods immediate duty-free access to the British market. This is a welcome deflationary measure. It will come as good news for households as the price of goods in their weekly shops fall. Leather shoes, clothes, home furnishings and more will be cheaper under this deal. However, it is disappointing that this welcome reduction in tariffs is very far from symmetrical. Indian exporters benefit immediately, while British exporters sit in the waiting room. Scottish whisky producers, whom we have heard about, manufacturers of electric vehicles, the medical consumables industry and chemical producers will have to wait for between five and 10 years before tariffs are fully reduced.

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

The hon. Gentleman briefly mentions whisky. The deal is broadly welcomed by the Scottish whisky sector and I have welcomed it myself as an MP for a constituency with 49 distilleries—I am trying to visit them all. He talks about asymmetry in the deal, but is there not asymmetry in Labour Government policy, between the export deal, where they are trying to get the best possible deal for whisky, while whisky is still paying the highest levels of duty for alcohol in the UK? That is putting undue pressure on a sector that is already under pressure.

[Andrew Griffith]

The hon. Gentleman makes an important point. I do not want to simply agree with him for the sake of it: it is not easy for Chancellors of whatever flavour to balance the books, but where we have wonderful industries such as all our drinks and spirits industries, including, if I may say so, our English wine industry, the Government must do everything they can to promote them—