Food and Drink Federation welcomes Indian trade deal, with confectionery to benefit
candies with jelly and sugar. colorful array of different childs sweets and treats
The UK’s Food and Drink Federation has welcomed a freshly-signed trade deal with India, which is set to benefit export segments including British chocolate and snacks markets, reports Neill Barston.
Notably, the deal signed within the past week, has been heralded as a major win for the region’s economy, with the agreement said to bring up to £6 billion in new investment and exporting opportunities for the nation.
As part of the deal, India’s average tariff on UK products, which has until now been set at around 15%, will drop to 3%, with hopes that a number of market segments will stand to prosper as a result.
Significantly, confectionery, which had been hit with a far higher level of import taxation to India (at 30%), is now expected to see some improvements, with that rate set to fall to 0% after seven years.
Sugar confectionery also attracted Indian tariffs of 30-40%, will be put at 0% after the same timeframe, and sweet biscuit taxes, presently 30%, will be reduced to nothing after a period of five years.
Notably, in order to protect sensitive UK sectors, Britain has offered no additional market access to Indian producers for the following products: sugar, milled rice, pork, chicken and eggs. Current duties will continue to apply for these products. Most other Indian products will be liberalised (0% tariff) from when the agreement comes into force.
George Hyde, Head of Trade, The Food and Drink Federation, welcomed the fresh deal with India. He commented: “We’re pleased to see the details of the new Free Trade Agreement with India, with tariffs for iconic British products, including chocolate, breakfast cereals and biscuits set to be phased out over the next decade. We also welcome that this agreement protects the UK’s sugar and rice milling sectors, reflecting the vital role these industries play in boosting local economies.
“With exports of UK food and drink to India already worth nearly £300 million annually, improved access to this growing market will help strengthen the competitiveness of our sector and help future-proof the nation’s food security. We look forward to working with government to help businesses make the most of this opportunity.”
