On Monday 9 February, MPs debated the newly-agreed FTA (Free Trade Agreement) with India. The NFU has broadly welcomed the deal, as it protects the UK’s food standards.
The NFU has also praised the access the deal gives to British lamb – a key ask of the NFU during negotiations. However, the NFU is concerned that the deal gives fully-liberalised access to the UK’s dairy market for Indian products, without reciprocal access in return, making the Indian agreement the third FTA which does this. The NFU briefed MPs on its position on the FTA before the debate.
Opening the debate, Trade Minister and Welsh Labour MP for Rhondda and Ogmore Sir Chris Bryant, told MPs that the deal was important as India is a rapidly growing economy, and likely to be the third largest economy by 2029.
Potential impact on the dairy industry
Many MPs discussed the potential impact that the FTA could have on the UK dairy sector. John Cooper, the Scottish Conservative MP for Dumfies and Galloway, raised NFU President Tom Bradshaw’s appearance in front of the Trade and Business Committee in the debate, where Tom praised the opportunities for British lamb but noted his concerns about the impact on the British dairy industry.
Echoing Tom, Mr Cooper told the debate that, while few Indian dairy products currently come to Britain, it was almost inevitable that India's dairy production would grow as their economy does, increasing the risk of a glut of Indian dairy products entering the UK market.
The Shadow Business and Trade Secretary and Conservative MP for Arundel and South Downs, Andrew Griffith, and Dame Harriet Baldwin MP, the Shadow Trade Minister, also referenced these concerns.
Responding, the Minister said he was not aware of any Indian dairy companies that would be able to export to the UK, as none currently have the required import licence. Although Mr Cooper later pointed out that, even with licensing requirements, Indian dairy imports to the UK would still be adding more pressure to a sector vulnerable to volatile dairy prices.
Auditing and standards verification
Iqbal Mohamed, the independent MP for Dewbsury and Batley, and Liam Bryne, the Chair of Trade and Business Committee and Labour MP for Birmingham Hodge Hill and Solihull North, both raised their concerns about the difference in compliance culture between Britain and India. Both MPs questioned whether the lack of clarity about how the deal would be implemented would mean products that don’t meet our standards could enter Britain due to weak checks at the Indian border.
However, the Trade Minister Chris Bryant MP reassured MPs in the debate that, while the Department for Business and Trade is seeking to reduce export support staff by 40%, staff would not be taken out of India. Liam Byrne MP welcomed this, saying this would ensure we would have staff to help Indian firms navigate the rules of origin, quota management, regulatory blockages and enforcement failures on their exports to the UK.
Lobbying on trade continues
Alongside the India FTA, the NFU is also lobbying to ensure that any other trade deals do not undermine our food standards. The Prime Minister made a commitment to NFU President Tom Bradshaw that the government will uphold the UK’s world-leading food and animal welfare standards in all future trade deals.
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