Meanwhile, efforts have been foiled to secure a Bilateral Investment Treaty, a pact that would give firms the right to sue governments over policy changes they claim would harm their investments, through a mechanism known as an Investor-State Dispute Settlement (ISDS).
Negotiators had hoped to get the deal over the line to coincide with the free trade agreement. However, talks have been hampered by legal questions over a sunset clause which is still in effect from their previous investment treaty. The U.K. government argues it couldn’t find a landing zone that worked for British firms, but is continuing negotiations.
Next steps
Alongside the trade deal, the U.K. and India have also unveiled a raft of new investments, totaling almost £6 billion. These include a £30 million joint investment by the British aerospace firm Rolls-Royce and India’s Hindustan Aeronautics Limited to expand their manufacturing plant in Hosur, India.
“The almost £6 billion in new investment and export wins announced today will deliver thousands of jobs and shows the strength of our partnership with India as we ensure the U.K. is the best place in the world to invest and do business,” Trade Secretary Jonathan Reynolds said.
In addition, the U.K. and India have signed a renewed Comprehensive and Strategic Partnership, which will see closer collaboration on defense, education, climate, technology and innovation. Both sides also agreed to step up cooperation to tackle corruption, serious fraud, organized crime and irregular migration.
The government said it would now prepare for the trade agreement to be ratified by parliament.
Thursday’s signing kick-starts a process that will see the text of the deal published around midday and then reviewed by Britain’s agricultural trade watchdog, the Trade and Agriculture Commission over the coming months, before parliament returns in the autumn to scrutinize the deal.
