Misuse of UK India Free Trade Agreement 🤝
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UK and India were very close to the date to sign a free trade agreement, but the home minister of UK said in an interview that this agreement can become a base to the huge numbers of Indian immigrants move to UK & stay in UK.
Free trade agreement is done when two countries agree to provide extra facilities to each other over rest of the countries in trading business. For example, US and Australia 🌏 🦘 have signed a free trade agreement in 2005. Due to this agreement, Australian agricultural products are free from US tariffs & many others are duty free when Australia exports them to USA & similarly Australia makes tariffs or duty free to US products. It's very clear the Free Trade Agreement allows the permission of GIVE & TAKE of a country.
UK was previously the part of European Union, although it implemented partially EU rules & regulations for securing its own interests. European Union is a union of most of EU countries & many associated countries, thus, UK was having a big area for trading. But Brexit makes European Union to strictly block all trades with UK. This causes UK to loose a big trading territory which impose a big impact on UK trade.
Consequences of Brexit obligate the UK to find new trading partners. Current Russia and Ukraine war, & UK expenditures in arms delivery to Ukrainian army makes an increase in the pressures on the UK political & business community to find new business territory as earliest.
China is under top five biggest economy but entry of foreign trades in China market is not easy. Nevertheless, China business policy is to Made In China but Sell In Foreign.
China is the highest populated country and consumption of China made products and services is very high. Due to this reason, China is not a very attractive place for foreign business. Foreign traders face limitations in doing business.
Another side, India is 5th largest economy in all over the 🌎🌍 world & India allows any country to enter its business territory & do business. Consumption of products & services made in out of India is very high. Indian policy doesn't impose limitations on foreign traders. A product must stand in varieties of products available in India. India is the second largest country in population. Thus, Indian policy is to buy & consume more & more. This makes India at a top place in trading relations in foreign countries.
India produces millions of talented professionals every year skilled to tackle the challenges through its institutions best in education & trainings. Nevertheless, India never restricts these skilled professionals to work only for India as many other countries do or make a specific policy to attract them for home return. In recent years brain drain becomes a hot topic for politicians & public, & several options are launched to make easy home return & contribute in economy growth with experience gained in a foreign country.
Thus, India considers two crucial capacities for trade agreement negotiations:
- Consuming power; a foreign trader can do business in India. (GIVE).
- Export of skilled professionals; they need facilities for visa, stay, entry in businesses & endeavors, loans etc overall to make easy the procedures. (TAKE).
After Brexit, due to economic imbalance, UK needs India to open its territory for goods & services of UK because India is only one biggest market of whole world with billions of people. Free trade agreement allows to sell goods & services in Indian territory at their production rates because they are at low or no tariffs or duty free.
The opposite site of business mirror confirms that a huge production & business task management require a sufficient numbers of skilled professionals. India is one of the top countries exporting business professionals all over the world 🌎🌍.
Most of advanced countries (USA, UK, Canada, Australia, Germany, France etc) have policies to impose limitations on entry & a long stay of foreigners to restrict the immigration, change of population demography & shortage of job opportunities & facilities available at social level. Thus, they try to rejuvenate & keep the best one in their territory.
Millions of skilled person from India try to migrate every year to advanced countries. These people face the difficulty to prepare & present many documents as well as long waiting time in visa procedures & approval in embassy. On visa approval they can only stay for few months or 1-2 years, then, again they have to follow the procedures of visa renewal. Besides, restrictions in foreign facilities (bank or public loans, public grants for family or business, unemployment grant etc) as well as higher taxes than a native coworker pay make India to demand from the foreign country more facilities for Indian skilled personals under free trade agreement.
UK recieve many Indian skilled professionals every year to cover their shortage in UK territory. Because lack of skilled people certainly block the development, management & supply of goods and services of UK to India. But most of these professionals face one or more problems during immigration to UK or inside the UK. Therefore, India & UK, both governments are trying to reach an agreement to provide options to facilitate easy immigration of skilled professionals to UK under free trade agreement.
Nevertheless, it is also truth, as seen from past experience, these may facilitate immigration to UK of illegal people who are not skilled professionals as well as many of these unskilled and skilled professionals become burdance to economy of the UK, for social services & society due to their poor contributions in growth of the UK. This is what the home minister of UK is trying to emphasize in her interview. But it cannot be avoided that UK needs a good workforce to do business & benefits in favor. UK home ministry needs to tackle the pressures to proceed timely the visa applications which they receive in future under free trade agreement.
Noteworthy, the parents of the home minister of the UK are from India. Many of the team of the current PM of the UK have Indian origin. The candidate of the PM, who was opponent of the current PM, was also from Indian origin descendents. Many mayors, city council members, politicians & business personals are from India descendents who immigrated to UK many decades ago. All of them including home minister herself do contribution in economical, social & political growth of the UK.
Under free trade agreement UK is to recieve a big market as well as a tained work force and both are provided by India. Thus, free trade agreement will certainly produce a big impact on trade in favour of the UK which can create a more stable UK economy. So it is unnecessary to raise such question in an interview which makes Indian politicians & government officers furious & speak against her opinion.
This is not a misuse of UK India free trade agreement 🤝 if one think with open mind of the rising of global trade market in recent years & management competitiveness.
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