£16bn Australia deal is small change compared to other countries’ potential
A government source has revealed that the UK is set to sign a trade deal with Australia as soon as March. A free trade deal between the two countries would increase the £16 billion in trade done annually between the two countries and be the 65th trade deal signed by international trade secretary Liz Truss since Brexit.
Although this is a positive step, a UK-Australia deal is small change compared to potential deals with global economic powerhouses, such as India, the US and China. Now that an Australia deal looks secure, Boris Johnson and Truss should make an India trade deal a top priority. The UK-India trade and investment relationship is already worth around £24 billion and supports more than half a million jobs across the UK, providing great building blocks for the future.
Gaurav Singh, Founding Partner at venture capitalist firm JPIN VCATS, comments on the importance of a trade deal:
“It’s great to see that Australia and the UK are on the brink of agreeing a trade deal. However, Johnson needs to aim higher, and make an Indian trade deal his number one priority.
“India is one of the world’s largest economies and presents huge potential as a key partner for trade and investment for the UK. India is a 21st century powerhouse and creating a strong UK-India trading relationship will help to fuel economic recovery in a post-Brexit, post-Covid UK. India and UK have been working to improve trade and it can really allow UK to benefit from the immense growth India is about to experience in the coming decade. A trade deal with India could be as high as £50-100 billion, given India was a top two FDI source for UK and UK has been a top six investor into India.
“A trade deal will open the door to 1.3 billion potential customers for UK businesses, and provide opportunities for business improvement, consolidation, foreign expansion and diversification in a rapidly growing market.”