Jonathan Reynolds, Secretary of State for Business and Trade and President of the Trade Committee, leaves 10 Downing Street after attending the weekly Cabinet meeting in London, United Kingdom.
Wiktor Szymanowicz | Future publishing | Getty Images
LONDON – Britain's business secretary said on Monday that securing trade deals with India and the Gulf states remained “the priority” for the Labor government, with talks between Britain and the Gulf Corporation Council expected to resume as early as next week.
Britain's Business and Trade Secretary Jonathan Reynolds told CNBC that negotiations with a six-member group of Gulf states would resume “very soon – perhaps as early as next week,” while talks with India also remained a priority.
“The Gulf and India are priorities,” Reynolds said at the UK International Investment Summit at London’s Guildhall. “I think there are clear economic and commercial reasons why we should pursue this,” he said.
Free trade deals with the UK have been touted as a key benefit of Brexit, with former prime minister and Brexit supporter Boris Johnson pledging to secure such a deal with India “by Diwali” 2022. But so far they have proven elusive. Contracts with Australia, New Zealand and Singapore are among the few that have been agreed so far.
Shortly after taking office in July, Reynolds committed to continuing the work of the former Conservative government on this issue, and last month he visited the Gulf for initial talks with the Gulf Cooperation Council, whose members include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
The trade minister had also previously stated that the government was holding trade talks with Israel, South Korea, Switzerland and Turkey.
Reynolds declined to commit to a timeframe for the deals on Monday, saying the administration's initial task was to “restore authority for these trade negotiations” and expand on the work of his predecessors.
“When people say a deal is halfway done, of course the easy parts get done first, so it's not necessarily easy to explain the time frame,” he said.
But he insisted the deals were vital for the UK, both economically and diplomatically.
“It is important to recognize that, even if we do not conduct foreign policy through trade agreements, British engagement in the commercial sphere – country to country, business to business – is in itself a good thing,” he said.
“And even if these countries are not democracies like ours, it is a very positive relationship that needs to be fostered. It’s not just commercial in terms of the benefits that come from it,” Reynolds added.
Trade talks between Britain and India, now entering their 15th round, could also resume as early as this month, local media quoted Indian Trade Minister Sunil Barthwal as saying last month.
Speaking to CNBC's Tanvir Gill in September, Indian Trade and Industry Minister Piyush Goyal said both parties were keen to reach an agreement soon but that it would be done “systematically.”
“A trade deal is never done with a gun to one’s head, neither with Britain nor with India,” Goyal said.
“We must protect national interests and sensitivities on both sides, and therefore treaties must be carefully calibrated to make them fair, equitable and balanced, reflecting the interests of both nations and taking into account the different positions that each partner has in the future.” .”
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