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Written question asked by Lord McNicol of West Kilbride (Labour) on Wednesday, 7 December 2022, in the House of Lords. It was due for an answer on Wednesday, 21 December 2022. It was answered by Lord Johnson of Lainston (Conservative) on Wednesday, 21 December 2022 on behalf of the Department for International Trade.

Trade Agreements: India

Question

To ask His Majesty's Government, further to their policy paper UK-India free trade agreement: the UK’s strategic approach, published on 13 January, whether they have produced any short-run estimates for the impact of the prospective UK-India free trade agreement on (1) wages, and (2) output, by sector, measured by gross value added.

Answer

The Computable General Equilibrium (CGE) model used to estimate these benefits produces long run results: although not explicitly modelled, this is typically assumed to refer to a period of around 15 years after implementation. Because the model used is static, all changes resulting from the agreement are incorporated at once and therefore it does not capture short run impacts.

India is projected to be the world’s third largest economy by 2050 and as India’s middle class grows to nearly a quarter of a billion middle class consumers, greater access to this market is expected to benefit UK firms.

Secondary information

Type
Written question
Reference
HL4101
Session
2022-23
Related items
Deposited Paper DEP2022-0038
Tuesday, 11 January 2022
Deposited papers
House of Lords
House of Commons
Grouped for answer
Yes
Subjects
India Trade agreements
Contains statistics
Yes
Link
View this Written question on www.parliament.uk