UK Prime Minister Faces Transparency Questions Amidst India Free Trade Agreement Negotiations
The UK Prime Minister, Rishi Sunak, is facing questions regarding transparency as the country negotiates a free trade agreement (FTA) with India. These concerns arise from his wife, Akshata Murty’s, significant shares in Infosys, an Indian software service major co-founded by her father, Narayana Murthy. Akshata’s shares in Infosys are estimated to be worth around £500 million, and there are concerns that the company could benefit from the proposed trade deal.
The Opposition Labour Party and trade experts have raised concerns about the potential financial impact on Infosys if the FTA is signed. Currently, India and the UK are in the 12th round of negotiations for the FTA, with Sunak preparing for his first visit to India as British Prime Minister for the G20 Leaders’ Summit next month.
Labour MP Darren Jones, who chairs the cross-party House of Commons Business and Trade Select Committee, has called for Sunak to declare any relevant interests regarding the India trade deal. Jones emphasized the importance of transparency in light of an inquiry that recently concluded that Sunak had inadvertently failed to correctly declare his wife’s shares in another company.
The ‘Observer’ newspaper reports that Infosys, which has had contracts with the British government and numerous UK companies, is seeking improved access to the UK for its contract workers through changes to the visa regime. Increasing the number of visas for workers in sectors such as IT and artificial intelligence is claimed to be a key demand from India in the ongoing trade talks.
According to the report, the Foreign, Commonwealth and Development Office (FCDO) has advised the Business and Trade Select Committee against conducting a trip to India in the coming months to examine issues related to the potential trade deal. This warning has raised concerns about the level of transparency and scrutiny surrounding the negotiations.
Shadow trade secretary Nick Thomas-Symonds has stated that while his party supports a trade deal with India, it is crucial for Sunak to be transparent about any relevant business links and his personal role in the negotiations. Alan Manning, a professor of economics at the London School of Economics, has suggested that to avoid any perception of a conflict of interest, the Prime Minister should recuse himself from negotiations concerning immigration if his family has a direct financial interest in the outcome.
In other developments, The Sunday Times reports that India is prepared to cut tariffs on Scotch whisky and British cars and parts by at least a third if the UK reduces its workers’ tax. Additionally, India is pushing for the UK to sign a social security agreement akin to ones it has signed with other countries, such as Canada, Australia, and France. This agreement could exempt Indian workers from social security contributions if they continue making payments in India.
As negotiations continue, it is crucial for the UK government to address concerns surrounding transparency and potential conflicts of interest. A balanced approach that considers different perspectives and ensures clarity and openness in the negotiation process is vital to build trust and ensure a mutually beneficial trade deal.
