Trade Justice Movement | 24 July 2025
UK-India FTA: a missed opportunity for a fairer, greener trade agenda
The UK–India Free Trade Agreement marks a milestone in UK trade policy, but without binding commitments on rights, climate or accountability, it falls short of delivering a truly progressive deal.
The UK and India have signed a long-anticipated Free Trade Agreement, concluding over three years of negotiations. Described by the government as a major economic milestone, the deal is expected to boost trade in goods and services between the two countries. As the first FTA to be signed since the UK released its updated Trade Strategy, the agreement offers an early test of those commitments.
Yet despite warm words on development, labour and the environment, the deal includes no binding protections in these areas and lacks the transparency and accountability needed to ensure trade works for people and planet.
Tom Wills, Director of the Trade Justice Movement said:
“While the UK government hails today’s signing of a trade agreement with India as a “landmark deal,” it is a missed opportunity to align trade with the UK’s commitments to climate action, human rights and international development.
The agreement slashes tariffs and secures market access for whisky, automobiles and financial services, but fails to include binding protections for labour rights, environmental standards or public health. As a result, it entrenches a model of trade focused on short-term economic gains rather than long-term, people- and planet-centred development.
There is no binding chapter on workers’ rights, with previous leaks suggesting the UK was unwilling to include meaningful protections. This silence speaks volumes at a time when trade should be used to tackle inequality and improve livelihoods in both countries.
While there are standalone chapters on gender and development, they are also weak and non-binding. They lack any mechanisms to ensure that trade delivers real benefits for marginalised communities or addresses structural inequalities.
Climate concerns have also been sidelined. The government’s own modelling suggests the deal could increase UK emissions, particularly from freight transport. Rather than advancing a just transition, the agreement risks locking in climate harm through deregulated trade in polluting sectors.
Meanwhile, a parallel investment treaty remains under negotiation. Reports suggest these talks have been difficult, reflecting India’s recent move away from ISDS provisions in its investment agreements to protect its ability to regulate in the public interest. The UK government must reject any inclusion of Investor–State Dispute Settlement (ISDS) provisions, which would allow corporations to sue governments over public interest policies. India itself has rolled back such treaties after facing a wave of damaging claims. The UK must follow suit.
As the first agreement to be signed since the UK published its Trade Strategy just a month ago, developed in parallel with these negotiations, this deal marks a significant moment in UK trade policy. That today’s deal already falls short of the strategy’s ambitions on climate, development and rights is particularly disappointing. It repeats the same mistakes of past deals by prioritising corporate access over public interest.
We call on the government to immediately publish the investment treaty negotiating objectives and reject any inclusion of ISDS. With parliamentary scrutiny and ratification expected this autumn, Labour must not repeat the mistakes it criticised the previous government for. Adequate time and transparent information must be provided to allow thorough debates and meaningful parliamentary oversight of this deal.
If the government is serious about using trade to build a fairer and greener world, this deal is not the way to do it. We need trade that lifts up workers, protects the planet, and puts people before profit.”