Another development this week for the UK’s trade deal programme, as the UK-India Comprehensive Economic and Trade Agreement (CETA) finally comes into effect after a year of waiting.
There’s more developments on trade deals, as the government launches a series of consultations in four future negotiations with countries in South America, Asia and the Middle East.
India-UK negotiations
The UK-India free trade deal has finally come into effect.
From today (15 July), UK businesses can trade with India on preferential terms, with tariff reductions highlighted as one of the major benefits for businesses based across the UK
A crucial part of this is pre-registering to complete rules of origin declarations when exporting to India. The Department for Business and Trade (DBT) claimed that this agreement will boost UK GDP by £4.8bn and bilateral trade by “£25.5bn every year in the long run”, but is urging traders to use this registration process.
Chartered Institute of Export & International Trade director general, Marco Forgione, said:
“The UK-India Free Trade Agreement is a landmark deal and the largest of its kind ever signed by India. It should deliver immediate benefits for businesses across the UK, cutting around £400m of tariffs from day one and opening new opportunities for exporters in every part of England, Scotland, Wales and Northern Ireland.
“Sectors such as Scottish whisky and automotive manufacturing stand to gain significantly, with whisky tariffs set to fall from 150% to 40% and automotive tariffs from 100% to 10%. But tariff reductions only become real commercial advantage when businesses are ready to use them.”
The deal was originally signed on 24 July 2025. However there was a lengthy ratification process before the deal came into effect.
Figures published jointly by the Northern Ireland Office and DBT found that the deal will boost Northern Ireland’s economy by £50m, with whisky and advanced manufacturing two of the industries expected to benefit.
New trade negotiations
DBT has announced a consultation on a series of trade relationships, all associated with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
DBT is seeking input on negotiating priorities for potential talks with Indonesia, the Philippines, the UAE and Uruguay. Preparatory negotiations were launched on 26 June, with talks now scheduled with Uruguay throughout the rest of the year.
“The government therefore wants to hear respondents’ views on the opportunities, priorities and considerations associated with deepening the UK’s trade relationships with these economies,” DBT said in its announcement.
“As a member of CPTPP, the UK is part of a major and growing trade partnership across the Asia-Pacific and the Americas,” said trade minister Sir Chris Bryant on a social media post.
“As these countries explore closer engagement with CPTPP, there is a clear opportunity to strengthen our trading relationships and support UK businesses to access new markets.
The consultation can be accessed here, with a deadline of 14 September for submissions.
Currently, the UK can trade on CPTPP terms with most of the bloc – which includes Chile, New Zealand, Australia, Mexico and Malaysia – with the only holdout, Canada, going live on 1 September.
New US sanctions bill
Following the death of South Carolina senator Lindsey Graham, the US has advanced a sanctions bill that would broaden the scope of US measures against Russia while also using tariffs to change the energy supply line.
Graham, a close ally of Trump and a major Russian hawk, passed away suddenly earlier this week at the age of 71. He had visited Ukraine only days before his death, alongside Democratic senator Richard Blumenthal, and met with Ukrainian President Volodymyr Zelenskyy. Both Blumenthal and Graham had emphasised the bi-partisan nature of the bill.
The new text would apply mandatory sanctions on Russia’s leadership and on its industrial base, while also giving the presidency the ability to waive sanctions.
Sources close to US President Donald Trump told Politico that the White House was in favour of the bill, which also would use tariffs to pressure purchasers of Russian energy to diversify to other sources.
Other headlines
- Chancellor Rachel Reeves gave her Mansion House speech yesterday, drawing attention to her achievements over the last two years, including boosts to SME supports and progress in the EU-UK trade relationship
- Outgoing premier Sir Keir Starmer became the first UK PM to receive France’s Légion d’honneur for his work in boosting European support for Ukraine’s war effort
- Attacks have continued in the Strait of Hormuz overnight after the collapse of the interim truce between the US and Iran. Trump has dropped his plan for a 20% charge on ships passing through the strait following diplomatic pressure
Yesterday in trade
- The UK and Switzerland sealed a trade deal focused on boosting services exports
- HMRC published its plans for a low value imports regime, including draft legislation laying out its approach
- Two tankers were hit in the Strait of Hormuz, with at least one sailor reported dead
You can read yesterday’s trade news here.
