British Conservative MP Bob Blackman has welcomed the India-UK Comprehensive Economic and Trade Agreement (CETA), set to take effect on July 15, 2026, describing it as a crucial milestone in strengthening bilateral economic ties. However, he cautioned that future policy moves, particularly a potential trade deal with the European Union, could erode the advantages gained from the pact.
Blackman's Remarks on the Agreement
Speaking to ANI, Blackman noted that the agreement, though limited in scope, represents a positive development. "It's good that we've got a trade agreement with our friends in India. It took about 15 rounds of talks to get to this stage. And of course, the current government just signed off where we had got to in government. They didn't make any changes to it," he said.
Blackman emphasized that both sides acknowledged the need for further improvements. "There was still on both sides acceptance there was still work to do to get a fair and equal balance and indeed looking to the future to reduce tariffs and hopefully eliminate them eventually so that we'd have friction-free trade," he added.
Post-Brexit Trade Flexibility
Highlighting the UK's ability to negotiate independent trade deals after leaving the European Union, Blackman stated, "One of the big advantages of being outside the European Union is that the United Kingdom can make these treaties and make these arrangements for trade. We would not have been allowed to do so as part of the European Union."
Concerns Over Future EU Deal
Blackman expressed concern that a future UK-EU trade arrangement could conflict with the India-UK CETA. "What that may do is countermand all the advantages we're going to get from trading with India, one of the largest democratic countries in the world and indeed, you know, a rapidly expanding economy. This would be a complete retrograde step if they do it," he warned.
He stressed the importance of expanding Britain's global trade network, citing agreements with India, Canada, the United States, and UK membership in the Trans-Pacific Partnership. "The key thing is that what we've got to do as a country is build on that and not go backwards," he said.
Details of the CETA Pact
Senior government sources told ANI that the landmarik India-UK CETA will come into force from July 15, 2026, with the government working to ensure customs notifications and related processes are in place so that exporters can start availing concessions from day one.
Describing the pact as a landmark achievement, sources said, "India-UK CETA is the most aspirational agreement so far," adding that it opens up a market worth over USD 500 billion for Indian businesses. "India will have decent market access. More than USD 500 billion worth of market opens up for India. India-UK CETA opens up large economic opportunities on both sides," sources said.
The agreement is expected to provide an additional tariff advantage of 7-10 per cent to Indian exporters, bringing India at par with several other countries that already enjoy zero-duty access to the UK market. Sources said over 99 per cent of India's tariff lines and 99 per cent of India's trade would come down to zero duty under the pact.
Trade Surplus and Economic Impact
India currently enjoys a trade surplus with the UK in both merchandise and services. India's services exports to the UK stood at USD 21.6 billion in 2024, while UK services exports to India were valued at USD 13.7 billion. Merchandise exports from India to the UK stood at USD 13.7 billion in 2025, compared with imports of USD 9.47 billion.
