Latest news with #GlobalTradeOutlook2025
Time of India
8 hours ago
- Business
- Time of India
UK's global trade outlook sees India becoming third-largest economy by 2028; British businesses eye tariff cuts worth £900 million
NEW DELHI: As India emerges as the "standout growth engine" of Asia, the UK government has placed the India-UK Free Trade Agreement (FTA) at the centre of its new trade strategy and global economic outlook, projecting it as a key tool to unlock billions in growth and provide a major edge to British businesses over global competitors. Unveiled on Thursday by the department for business and trade (DBT), the 'UK's Trade Strategy' and 'Global Trade Outlook 2025' outline a renewed focus on strategic FTAs, with India identified as a core driver of future prosperity. 'Asia's centre of growth is expected to shift from China to India,' the report states, forecasting India to become the third-largest economy by 2028. India-UK FTA: A 'landmark deal' The agreement, concluded early last month and expected to be formally signed by the end of August, is being hailed as 'transformative'. Once in effect, the FTA will offer immediate tariff relief of up to £400 million a year for UK exporters, potentially rising to £900 million over a decade. These gains are before factoring in faster customs procedures and digital trade facilitation. Key UK exports such as whisky, cosmetics, and medical devices will see Indian tariffs slashed, while 90% of tariff lines for UK exports will be locked in for long-term relief. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like A failing liver is taking my son away from me! Help him! Donate For Health Donate Now Undo The FTA is also expected to increase bilateral trade by £25.5 billion, raise UK GDP by £4.8 billion, and boost wages by £2.2 billion annually in the long run. A new trade playbook 'What works for business, works for Britain,' said Prime Minister Keir Starmer, highlighting the India deal among others with the US and EU. 'Broad and complex trade deals like we secured with India will bring billions to our economy every year.' Business and Trade Secretary Jonathan Reynolds called the India FTA a model of the government's Plan for Change, focused on 'more agile, targeted deals' that cater to high-growth sectors. Commerce Minister Piyush Goyal confirmed India's readiness to move swiftly once legal formalities conclude. 'We'll be ready as soon as the legal scrubbing is done,' he said during a recent UK visit. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
10 hours ago
- Business
- Economic Times
UK's global trade outlook sees India as Asia's 'standout growth engine'
AI generated image As the "standout growth engine" in Asia, India is projected to be the third largest economy in the world by 2028, and the recent Free Trade Agreement (FTA) offer British businesses a "major advantage" over their international competitors, the UK's new trade strategy and outlook have said. The 'UK's Trade Strategy' and an accompanying 'Global Trade Outlook 2025' released by the Department for Business and Trade (DBT) on Wednesday spotlights the trade deal with India, concluded early last month, as the centrepiece of the Labour government's approach to utilising FTAs as an important tool to meet its economic growth agenda. "Asia is expected to benefit from standout growth from India and a new generation of fast-growing emerging markets," reads the outlook. "Asia's centre of growth is expected to shift from China to India and other emerging markets, while Africa's demographic boom could drive high growth if job creation can keep pace with population growth," it notes. About the FTA, the trade strategy points out that the "comprehensive agreement" with India is reflective of the "transformative" impact that Free Trade Agreements can make. It reads: "For example, the UK-India FTA is a landmark trade deal that will drive growth and boost trade with one of the fastest-growing economies in the world. As soon as the deal comes into force, UK products will benefit from a saving of up to an estimated GBP 400 million a year, from India cutting its tariffs on existing trade alone, which could increase to around GBP 900 million a year after staging over 10 years. "And that's before factoring in the savings from speedier and easier trade from improved customs and digital commitments. This immediate relief represents a major advantage our businesses will enjoy over their international competitors." The trade strategy, which complements an Industrial Strategy released earlier this week, is aimed at setting a clear direction for the government's growth and job creation goals. "What works for business, works for Britain. It means more jobs, more opportunities, and more money in people's pockets. That's why I've backed British industry through global headwinds - securing major trade deals with the US, India and the EU that protect jobs and drive growth right across the country," said British Prime Minister Keir Starmer. "Broad and complex trade deals like we secured with India will bring billions to our economy every year but to deliver the Plan for Change we will strike more agile, targeted deals that exploit the sectors which drive the most growth for our economy," added Business and Trade Secretary Jonathan Reynolds. The strategy reiterates the "huge economic win" from the India FTA, which "slashes Indian tariffs on key products such as whisky, cosmetics and medical devices, locking in reductions on 90 per cent of tariff lines for UK exports to unleash opportunities for businesses across our regions and nations". "Furthermore, it delivers certainty for service suppliers, including non-discrimination commitments to support new opportunities. It delivers on our Plan for Change and is expected to increase bilateral trade by GBP 25.5 billion, increase UK GDP by GBP 4.8 billion, and boost wages by GBP 2.2 billion every year in the long run," the strategy adds. The India-UK deal is expected to be officially signed off at the end of next month following the obligatory parliamentary clearance in Britain. "We in India have a much faster process, comparatively, so we'll be ready as soon as the legal scrubbing is done and the document is sorted out," Commerce and Industry Minister Piyush Goyal had said during his UK visit last week to discuss the next steps in the FTA.
Business News Wales
a day ago
- Business
- Business News Wales
UK Government Unveils New Trade Strategy
The UK Government is publishing its first Trade Strategy since the UK left the EU. It said the strategy will make the UK 'the most connected nation in the world' adding that it will secure billions worth of opportunities for businesses. The UK Government says the Trade Strategy will: Unlock £5 billion worth of opportunities for UK exporters through the new Ricardo Fund, which will tackle complex regulatory issues, shape global standards, and remove obstacles for UK businesses selling abroad. Expand UK Export Finance (UKEF)'s capacity by £20 billion to a total of £80 billion, announce a new Small Exports Builder to give smaller firms better access to export protection insurance, and introduce improvements to help overseas buyers finance repeat orders from trusted UK suppliers in a more streamlined way. Vow to bolster the UK's trade defence toolkit and make the trade remedies system more agile, assertive, and accountable to guard British businesses against global turbulence and the growing threat of unfair trading practices. Target more mutual recognition of qualifications to boost the UK's status as a services superpower – the second biggest exporter of services in the world. Build on existing clean energy and green sector agreements with partners including Norway, Japan and South Korea and explores new, deeper cooperation with markets such as Brazil, the Philippines and Mexico. Announce the UK will join the Multi-Party Interim Appeal Arbitration Arrangement (MPIA), a temporary arbitration arrangement for resolving appeals to WTO trade disputes, demonstrating our commitment to an effective rules-based international trading system The UK Government has also published the Global Trade Outlook 2025 which explores the long-term trends that may shape the global economy and international trade in the coming decades. Prime Minister Keir Starmer said: 'What works for business, works for Britain. It means more jobs, more opportunities, and more money in people's pockets. 'That's why I've backed British industry through global headwinds—securing major trade deals with the US, India and the EU that protect jobs and drive growth right across the country. 'Today's Trade Strategy is a promise to British business: helping firms sell more, grow faster, and compete globally. It's about delivering growth as part of our Plan for Change—and making sure working people feel the benefits.' Business and Trade Secretary Jonathan Reynolds said: 'The UK is an open trading nation but we must reconcile this with a new geopolitical reality and work in our own national interest 'Our Trade Strategy will sharpen our trade defence so we can ensure British businesses are protected from harm, while also relentlessly pursuing every opportunity to sell to more markets under better terms than before. 'Broad and complex trade deals like we secured with India will bring billions to our economy every year but to deliver the Plan for Change we will strike more agile, targeted deals that exploit the sectors which drive the most growth for our economy.' UKEF measures included in the Strategy accompanies news this week that up to £13 billion of direct lending will be used to help boost exports across key industrial sectors, marking a £3 billion uplift in UKEF's facility. Secretary of State for Wales Jo Stevens said: 'Our Trade Strategy is an important step forward for businesses in Wales. The UK Government has already secured better access for Welsh exporters to the European Union, United States and India in recent trade deals and this builds on the progress made. 'We are focusing on targeted sector deals which will deliver results quickly that help Welsh businesses of all sizes reach new markets with greater confidence. 'This approach ensures that innovation and economic growth reach all parts of Wales, delivering on our Plan for Change commitment to raise living standards throughout every part of the UK.' Shevaun Haviland, Director General at the BCC, said: 'The Trade Strategy sets out a clear, evidence-based approach to raising the UK's export game. It rightly targets our strength in services, and vital high-growth goods sectors while identifying key markets in the Indo-Pacific, Americas and European neighbourhood. A focus on sectoral and digital trade deals is also welcome, alongside a commitment to a functioning rules-based global trading system. 'Place matters in trade. This strategy can generate economic growth in every nation and region of the UK, lowering tariffs and removing trade barriers. Our Chamber Network stands ready to build, invest and deliver on international trade as a partner of government and an engine for economic growth.' Ian Stuart, CEO of HSBC UK, said: 'I welcome today's announcement of the Trade Strategy. It provides a vital blueprint to ensure the UK's continued role as a great trading nation and leading services exporter, with a focus on the sectors that will drive growth in the decades to come. 'It also rightly recognises the challenges many exporters face at a time of heightened global uncertainty. This is a necessary first step in giving businesses the tools they need to thrive on the world stage. HSBC looks forward to supporting businesses to take advantage of the strategy and unlock the full benefits of international trade.' Jon Holt, Group Chief Executive and UK Senior Partner, KPMG, said: 'Our professional and business services industry is an international success story with our expertise in demand around the world. As a high-growth sector, we have long called for a Trade Strategy that enables UK businesses to take advantage of new global opportunities and expand into emerging markets. 'Today we have a clear plan. From removing barriers to overseas markets, to making it easier for our highly skilled people to travel and work across borders, this approach will strengthen our connectivity, boost inward investment and make sure our sector remains globally competitive. 'The strategy's success will depend on a strong partnership between business and Government.' Mike Hawes, SMMT Chief Executive, said: 'UK automotive is a trade powerhouse, generating imports and exports worth 108bn a year and typically Britain's biggest exporter of manufactured goods. Free and fair trade is fundamental to our success and recent agreements with India, the US and, particularly, the EU signal that intention. 'Today's trade strategy, aligned to the industrial strategy announced earlier this week, can provide the basis for continued success. 'Balanced trading relationships that break down tariffs and other barriers to trade will enable automotive companies to grow and get great British products into the hands of consumers all over the world, boosting jobs, business and prosperity at home.' John Pattinson, Founder and Managing Director of Air Cover Ltd, and a DBT Export Champion, said: 'The UK Government plays a vital role in enabling and accelerating the journey to export—a critical driver of economic growth. At Air Covers, we have benefited greatly from our close partnership with DBT Wales. 'The support we've received from DBT Wales, as well as from UK embassies and High Commissions around the world, has been instrumental to our expansion and success in international markets. 'We believe that the UK Government's Trade Strategy will open new opportunities for growth, both in established regions and emerging markets. For UK exporters, free trade agreements and the simplification of cross-border regulations are essential to unlocking global potential and maintaining a competitive edge.'
Miami Herald
24-04-2025
- Business
- Miami Herald
WTO warns Trump's tariffs risk reshaping global trade into two rival blocs
WASHINGTON – The Sino-American trade war could have drastic implications on the global economy and even split the world into two geopolitical trading blocs, according to the director general of the World Trade Organization, Ngozi Okonjo-Iweala. The United States would lead one and China the other. As the leader of the organization that regulates trade around the globe, Okonjo-Iweala outlined her concerns that President Donald Trump's tariff policies would disrupt the rules-based trading system. The future of international trade will depend on the ability of Beijing and Washington to come to an agreement. The U.S. and China have been engaging in a 'tariff war.' The United States imposed 145% tariffs on Chinese imports while Beijing has imposed 125% on American imports. Trump has been waiting for Beijing to come forward with a deal. However, China does not seem to budge on its position. Moreover, as both superpowers try to diversify their trading partners, the Chinese Communist Party vowed to retaliate against countries that try to increase trade with the United States to the detriment of China, risking broader global consequences. If the world splits into two geopolitical trading blocs, global GDP could decrease by 7%, warned the World Trade Organization. There was a glimmer of hope for tariff negotiations on Wednesday when Chinese Foreign Ministry spokesperson Guo Jiakun said, 'China's attitude towards the tariff war launched by the U.S. is quite clear: we don't want to fight, but we are not afraid of it. If we fight, we will fight to the end; if we talk, the door is wide open,' Jiakun said. On April 14, the WTO released its Global Trade Outlook 2025 report and the main projections were negative. The WTO projected the amount of goods traded in 2025 would decline by 0.2 percent. This would be an almost 3% drop from what was projected before Trump enacted his sweeping tariffs. North America's participation in global trade was forecast to decrease by 1.7% and GDP growth would decline by 1.6%, the largest downturn among all geographical regions. Moreover, North America's total exports were projected to drop by 12.6% and imports by 9.6%. The WTO also projected that Asia would take a significant blow in GDP growth of 0.4%. The WTO expected the Sino-American trade war to inevitably affect the rest of the world. Chinese exports to regions other than North America were projected to grow between 4% and 9%. Trump's unpredictability in global trade plays directly in these projections. The Chinese Ministry of Commerce said, 'China will unswervingly focus on handling its affairs well, using China's 'certainty' to counteract the 'uncertainty' of the external environment.' Furthermore, the least developed countries were the most likely to be vulnerable to these external pressures and might face competition with China in exports such as textiles and electronics. The trade between the United States and China only accounts for 3% of global trade. Trade between the other WTO members accounts for 87% of trade. However, China and the United States hold the most economic influence. 'China-US trade is 3% of world trade. So when you look at that, it's small, but the potential of these two big trading partners being able to persuade and create these blocks has such a negative impact on world trade, and therefore on world growth as well,' said Okonjo-Iweala. Despite these dire projections, the director general also explained that there could be opportunities for regions like Africa to diversify their exports amid this potential restructuring of trade. 'Africa's world trade has stagnated at about 3%. That's not good enough, because they are still exporting the same things. So, I think it is time to attract more value addition on the continent, and the potential is there, and it's so critical now, because aid is drying out,' said Okonjo-Iweala, who is from Nigeria and is the first woman and African to lead the WHO. Okonjo-Iweala also agreed with the Trump administration that there should be less over-dependence and more interdependence between countries. 'I've said very clearly that it does not build global resilience to have 95% of semiconductors made in one place. It does not build global resilience to have 10 countries export 80% of the vaccines used in the world when you have a pandemic, it just doesn't work. You need to decentralize,' she said. She echoed Trump's claim that restoring local manufacturing could increase jobs in America. 'I think this administration would argue we want to see a wholesale re-industrialization of America. We want more manufacturing jobs,' Okonjo-Iweala said. 'But there's a broader agenda here of creating what are viewed as better jobs that support a community, that create more possibility for workers to succeed than just services jobs.' Copyright 2025 UPI News Corporation. All Rights Reserved.
Yahoo
23-04-2025
- Business
- Yahoo
WTO warns Trump's tariffs risk reshaping global trade into two rival blocs
WASHINGTON D.C. -- The Sino-American trade war could have drastic implications on the global economy and even split the world into two geopolitical trading blocs, according to the director general of the World Trade Organization, Ngozi Okonjo-Iweala. The United States would lead one and China the other. As the leader of the organization that regulates trade around the globe, Okonjo-Iweala outlined her concerns that Trump's tariff policies would disrupt the rules-based trading system. The future of international trade will depend on the ability of Beijing and Washington to come to an agreement. The U.S. and China have been engaging in a "tariff war." The United States imposed 145% tariffs on Chinese imports while Beijing has imposed 125% on American imports. President Trump has been waiting for Beijing to come forward for a deal. However, China does not seem to budge on their position. Moreover, as both superpowers try to diversify their trading partners, the Chinese Communist Party vowed to retaliate against countries who try to increase trade with the United States to the detriment of China, risking broader global consequences. If the world splits into two geopolitical trading blocs, global GDP could decrease by 7%, warned the World Trade Organization. There was a glimmer of hope for tariff negotiations on Wednesday when Chinese Foreign Ministry spokesperson Guo Jiakun said, "China's attitude towards the tariff war launched by the U.S. is quite clear: we don't want to fight, but we are not afraid of it. If we fight, we will fight to the end; if we talk, the door is wide open," Jiakun said. On April 14, the WTO released its Global Trade Outlook 2025 report and the main projections were negative. The WTO projected the amount of goods traded in 2025 would decline by 0.2 percent. This would be an almost 3% drop from what was projected before Trump enacted his sweeping tariffs. North America's participation in global trade was forecasted to decrease by 1.7% and GDP growth would decline by 1.6%, the largest downturn among all geographical regions. Moreover, North America's total exports were projected to drop by 12.6% and imports by 9.6%. The WTO also projected that Asia would also take a significant blow in GDP growth of 0.4%. The WTO expected the Sino-American trade war to inevitably affect the rest of the world. Chinese exports to regions other than North America were projected to grow between 4% and 9%. Trump's unpredictability in global trade participates directly in these projections. The Chinese Ministry of Commerce said, "China will unswervingly focus on handling its own affairs well, using China's 'certainty' to counteract the 'uncertainty' of the external environment." Furthermore, the least developed countries were the most likely to be vulnerable to these external pressures and might face competition with China in exports such as textiles and electronics. The trade between the United States and China only accounts for 3% of global trade. Trade between the other WTO members accounts for 87% of trade. However, China and the United States hold the most economic influence. "China-US trade is 3% of world trade. So when you look at that, it's small, but the potential of these two big trading partners being able to persuade and create these blocks has such a negative impact on world trade, and therefore on world growth as well," said Okonjo-Iweala. Despite these dire projections, the director general also explained there could be opportunities for regions like Africa to diversify its exports amid this potential restructuring of trade. "Africa's world trade has stagnated at about 3%. That's not good enough, because they are still exporting the same things. So, I think it is time to attract more value addition on the continent, and the potential is there, and it's so critical now, because aid is drying out," said Okonjo-Iweala, who is from Senegal, and is the first woman and African to lead the WHO. Okonjo-Iweala also agreed with the Trump administration that there should be less over-dependence and more interdependence between countries. "I've said very clearly that it does not build global resilience to have 95% of semiconductors made in one place. It does not build global resilience to have 10 countries export 80% of the vaccines used in the world when you have a pandemic, it just doesn't work. You need to decentralize," she said. She echoed Trump's claim that restoring local manufacturing could increase jobs in America. "I think this administration would argue we want to see a wholesale re-industrialization of America. We want more manufacturing jobs," Okonjo-Iweala said. "But there's a broader agenda here of creating what are viewed as better jobs that support a community, that create more possibility for workers to succeed than just services jobs."
