INDIA'S WORLD : February 03, 2020
BREXIT, INDIA, EU AND UK TIES
➢ Britain formally left the European union on Friday, the hard work of building a new economic relationship between the clock and its ex member has just begun.
➢ there lies difficult negotiation ahead as the UK, executes it's biggest trading deal,
covering everything from tariff and product standards to British industries ability to recruit foreign workers and the use access to UK cost off for now little has changed.
➢ The two sides agreed on a transition period that keeps current rules and regulations in effect and December 31st.
➢ But that gives the UK Government in just 11 months to negotiate a comprehensive trade
in that could decide the prospects of British business for decades to come.
➢ the European union accounted for 54% of Britain's imports and 43% of its exports in 2016.
➢ Britain, France and Germany often carried the burden of European foreign policy and defense policy for stop button out, France and Germany have to find new allies among the other 27 countries.
➢ it remains to see whether they will have a Norway kind of arrangement with European union which means you are almost in European union what political you are out of it.
➢ Second option is the Canadian option where 98% of 13 lines between Canada and European union are tariff free and both sides can bid for each other in public procurement.
➢ Prime minister of Britain Boris Johnson has openly said that he wanted to have Canadian type of agreement with European union. But in Canadian agreement, European union Canada free trade agreement is 1600 pages long and besides the tariff there are huge amounts on regularisation and transparency.
➢ Britain effectively now follows all the regulations of the European union accept the
judgement of European courts of justice but it has no influence over the decisions and regulations generated for next one year.
➢ Britain of course is an asset for European union, one of the largest after Germany. Once it walks out, it considerably reduces the strength of European union on economic and political fronts.
➢ India will revise its bilateral trade and investment agreement with European union.
➢ Boris Johnson is also very enthusiastic regarding trade with India but that also cannot take place before the UK-EU trade relationship has been cemented.
➢ Technology and technology driven innovations, investment are the areas we need to focus primarily with UK besides immigration.
➢ Indian investment to Britain is the fourth largest in terms of outward investment. India invested in information technology, in auto component and in healthcare. Britain issued the largest number of work visa to Indians upwards from of 50000 two years ago.
➢ Foreign policy of Indian government continues to believe that our relationship with
Europe is under plate and needs to be built up. UK is not a part of under plate, but the UK has been not as important as France and Germany and has been an important in international forums such as United Nations.