London:

This past Wednesday, the British Prime Minister celebrated what he described as a “fantastic” Free Trade Agreement (FTA).

During a recent Prime Minister’s Question Session held in the House, he highlighted the achievements of the Labour Government in finalizing FTA negotiations with India the previous week, while criticizing the Conservative Party for not challenging government dealings over the last eight years.

He engaged with opposition leader Kemi Badenoch, focusing on the employment records and business performance under the Labour government.

“We secured a historic trade agreement with India and a significant deal with the US last week, which aims to protect and create jobs in the UK, cut tariffs, and stimulate economic growth,” the Prime Minister stated. “The deal with India is substantial. Car tariffs are reduced to 10%, and tariffs on whiskey and gin are cut in half, bringing £4.8 billion into our economy. What’s Badenoch’s plan? Is she suggesting we dismantle this agreement?”

The UK Prime Minister also referenced a statement made by Badenoch last week. She had claimed that the “fake news” narrative regarding the Double Comment Convention (DCC) was incorrect, stating it was not on the table during negotiations with the previous government.

“She even tried to shift some responsibility onto the Indian government for this ‘fake news’. It’s easy to see why her tenure as Secretary of Commerce was marked by challenges. The Conservative project is finished; they’re fading into irrelevance,” he added.

The Tories have criticized the DCC, claiming it would create a two-tier tax system allowing Indian workers tax exemptions for their first three years. However, government officials from both the UK and India have pointed out that the exemptions provide mutual benefits, including for UK workers in India. Notably, the discussions were part of the negotiations when Badenoch served as British trade secretary under the Tory government.

“Honestly, the previous government wasted eight years on India’s trade deal, and we have now accomplished it. This former trade minister seems to be singularly against any trade agreements that would benefit our economy,” he remarked.

As per the UK’s Business and Trade Agency (DBT), the FTA, which was agreed upon on May 6, is anticipated to add £25.5 billion annually in the long run.

It also noted the reductions in tariffs on Scotch whiskey and highlighted the drop in car tariffs from 150% to half, ultimately down to 40%, framing it as a significant victory for UK businesses. The agreement is currently being finalized in draft form before it receives legislative approval.