Global trade is shifting as nations actively pursue regional agreements in Latin America, the Middle East, and ASEAN. Driven by a desire for enhanced economic cooperation and diversified partnerships beyond traditional Western markets, these deals focus on tariff reduction and increased market access.
Global trade is changing —and fast. A wave of new regional partnerships is underway as nations look to reduce their reliance on traditional Western European and North American markets to build stronger economic ties with each other.
One of the most closely watched developments is the recently concluded Free Trade Agreement (FTA) between India and the United Kingdom. After three years of meticulous negotiations, the comprehensive FTA was finalised on May 6, 2025.
This landmark agreement is poised to inject considerable momentum into the bilateral trade relationship, with projections suggesting a potential increase of £25.5 billion annually by 2040.
For India, the FTA unlocks significant market access to the UK, with the elimination of duties on 99% of its exports, encompassing vital sectors such as textiles, leather, agriculture, IT services, engineering goods, auto parts, and jewellery.
This enhanced access is expected to provide a substantial boost to these industries and generate new employment opportunities, particularly in labour-intensive sectors.
Moreover, the agreement includes ambitious provisions for the services sector and professional mobility, including a three-year social security waiver for Indian professionals working temporarily in the UK, offering considerable financial benefits to the IT and finance sectors. India also stands to gain from potentially lower input costs due to reduced tariffs on certain UK goods.
For the United Kingdom, the FTA with India presents an opportunity to tap into a large and rapidly expanding economy.
India will reduce tariffs on 90% of British goods, including significant reductions on automobiles (under quota), whisky and gin, food and drink products, medical devices, and cosmetics.
This improved access is expected to enhance the competitiveness of UK goods in the Indian market and create new export opportunities for British businesses.
The agreement is also anticipated to foster greater investment, technology transfer, and innovation between the two nations, particularly in emerging sectors like clean energy, potentially contributing to a £4.8 billion annual boost to the UK economy by 2040.
Across the Atlantic, the United Kingdom and the United States announced a “historic” Economic Prosperity Deal on May 8, 2025. While not a comprehensive free trade agreement, this deal signifies a commitment to strengthening economic ties by addressing previously imposed tariffs… to read more click here.