Keir Starmer in danger of blowing UK’s ‘biggest free trade deal since Brexit’ | Politics | News

Britain is in danger of blowing the “biggest free trade deal since Brexit” and squandering the chance to make the most of new trading freedoms with India, Labour has been warned. Billions of pounds of tariff savings from the UK’s trade deal could be jeopardised, according to the cross-party business and trade committee.

Committee chairman Liam Byrne claims there could be “nearly 40%” cuts to UK export support staff who are responsible for helping firms use the agreement. Savings for exporters could shoot up from £400million a year to £3.2billion within a decade. The landmark deal could see UK GDP boosted by £4.8billion every year by 2040. The deal is expected to boost car industry exports by 311% and spirits sales by 180%.

But the MPs warn that red tape could choke off these hopes. They say that slashing UK trade staff who help British businesses break into the mighty Indian market could put the expected trade gains in peril.

Mr Byrne, a former Chief Secretary to the Treasury, said: “This is the biggest free trade deal since Brexit with the potential to deliver billions in tariff savings for UK exporters, boosting growth and creating new jobs. But Parliament is being asked to ratify a deal promising billions in tariff savings while the Government is simultaneously cutting nearly 40% of the export staff needed to help exporters make the most of this new bargain.

“That is a serious delivery risk. Ratification is only the start of turning a promise on paper into the prize of new profits. So, ministers must now table a clear plan backed with real resources to make access on paper into exports in practice.”

Andrew Griffith, Shadow Secretary of State for Business and Trade, said: “The India trade deal should be a major Brexit win, but Labour is putting billions at risk by simultaneously cutting the very export support staff who businesses need to use it.

“Leaving the EU gave us the freedom to strike deals like this with fast-growing economies so it is odd that this Government is squandering those opportunities through their anti-business laws and taxes and trying to take us back to a world where the EU makes our rules. Only the Conservatives will get a grip on civil service numbers and stop this Government’s Brexit betrayal.”

The MPs are “sceptical” that mutual recognition of qualifications will become a reality. They state ministers “must be held accountable for ensuring that businesses are able to use the agreement effectively” to drive growth.

The report describs the UK–India Comprehensive Economic and Trade Agreement (CETA) as the “UK’s most economically significant bilateral free trade agreement since leaving the European Union“.

Stressing the importance of the deal, it adds: “The strategic importance of India, which is expected soon to become the world’s third-largest economy, underpins the case for an ambitious partnership. India is already the UK’s 12th largest trading partner, and its growing middle class offers long-term opportunities for UK exporters in goods and services. In a global environment characterised by rising tariffs and a shift towards protectionism, the UK has secured a ‘first-mover’ advantage in a market where other major partners, including the EU, have yet to conclude negotiations.”

The Department for Business and Trade has been invited to comment.