As the UK pushes for greener economic practices, the FTA with India will need to balance trade facilitation with stringent environmental standards
With the Labour Party now leading the UK, international trade dynamics, particularly the Free Trade Agreement (FTA) with India, are set for transformation. The Labour Party’s emphasis on climate change and its advocacy for mechanisms like the Carbon Border Adjustment Mechanism (CBAM) will likely influence the future of this trade deal.
Labour Party’s Environmental Agenda
A key aspect of Labour’s policy is its strong commitment to environmental sustainability. Under the leadership of Keir Starmer, the party has set ambitious goals to tackle the climate crisis, aiming to decarbonize the UK economy by 2030, significantly earlier than current targets. Labour plans to invest heavily in renewable energy and enforce stricter regulations on carbon emissions. The UK’s Climate Change Act 2008 mandates that the UK achieve net-zero carbon emissions by 2050, and Labour’s policies intend to accelerate this shift.
The Labour Party’s Green New Deal is a central component of this push, aligning with the global urgency to meet and exceed Paris Agreement targets. As a result, the party’s approach to trade, including the India-UK FTA, will likely reflect its commitment to green policies. Labour’s aggressive stance on climate action will shape its trade policies, embedding sustainability into international agreements.