LONDON, June 17 (Reuters) – Britain’s free trade agreement with India will come into force on July 15, the British government said on Wednesday, reaching agreement to implement the deal despite a dispute over London’s forthcoming steel tariff regime.
Indian officials had raised the prospect of reopening or delaying the application of the FTA, worth £4.8 billion ($6.5 billion) and signed last year, over concern about the impact of new UK steel trade measures, due to come into effect on July 1.
But the two countries agreed to move ahead with implementation of the trade deal after British Prime Minister Keir Starmer held talks with his Indian counterpart Narendra Modi at a G7 leaders summit in France.
“The deal gives British exporters an edge over international competitors, and I would encourage all businesses to ensure they are properly prepared,” British Business and Trade Secretary Peter Kyle said in a statement.
Under the deal, India will cut whisky tariffs to 40% from 150%, and automotives from 10% under a quota to 100%, with Britain cutting tariffs on goods such as clothes, footwear and some food.
The British government said businesses had 28 days to register in order to get the benefit of tariff reductions.
($1 = 0.7462 pounds)
(Reporting by William James, Alistair Smout and Muvija M)
