India-UK trade deal comes into effect: What’s cheaper in each country now?

India and the United Kingdom's Comprehensive Economic and Trade Agreement (CETA) has taken effect, significantly reducing tariffs on thousands of goods and expanding market access for service firms and professionals in both countries. The deal grants Indian exporters duty-free access to most British tariff lines, benefiting sectors like textiles, leather, and gems. Conversely, the UK gains wider access to Indian markets through phased tariff cuts in areas such as automobiles. Products like cosmetics, whiskies, and lamb will become cheaper for Indian consumers, while UK consumers will see reduced prices on Indian marine exports, textiles, and processed foods. The agreement aims to deepen economic ties, boost trade, and foster cooperation in technology and innovation, though certain sectors like poultry and dairy remain unaffected.

The India-UK free trade agreement, which has come into effect, aims to boost trade between the two economies. While some sectors like Scotch whisky will see immediate tariff reductions, experts suggest the overall impact will be incremental rather than transformational. Data indicates that a significant portion of Indian exports to the UK already entered duty-free, and certain Indian imports from the UK, like silver, are excluded from the agreement. The success of the deal will be measured by increased export orders, volumes, and profit margins for Indian goods previously facing UK tariffs, with visible impacts expected within one to three years. However, unresolved issues such as UK tariffs on steel imports and the proposed carbon tax could create new trade frictions.

China has eliminated tariffs on imports from all but one African nation, aiming to boost trade. However, this move occurs amidst a significant and widening trade imbalance favoring China, with African exports to China dominated by raw materials. Experts suggest that while more industrialized African economies like South Africa and Morocco may see immediate benefits, the policy alone won't solve broader structural issues like limited industrial capacity and reliance on commodity exports. The long-term impact depends on Africa's ability to diversify and upgrade its production. Potential new markets for African goods like coffee and nuts are emerging due to changing Chinese consumer demand, with sectors like agriculture expected to benefit.