UK-India trade deal misses the target on legal services market access
The failure to include legal services in the free trade agreement (FTA) announced today (6 May) between the UK and India is a missed opportunity for both UK and Indian economies, the Law Society of England and Wales has warned.
The UK is the world’s second largest legal services provider. Legal services contribute £57.8 billion annually to the economy. The sector supports around 526,000 people in employment, amounting to 1.6% of the UK workforce.
India is set to become the world’s third largest economy by 2050 and, according to the UK government, the trade deal between the two countries had the potential to almost double UK exports to India.
“We welcome the UK government’s achievement as a marker of much improved trade arrangements with India but are disappointed to see that the UK-India FTA has been agreed without reference to legal services,” said Law Society president Richard Atkinson.
“This is a missed opportunity for a significant breakthrough in terms of market access for lawyers in both India and the UK. Legal services is an enabling sector, supporting other sectors in their own trade and investment decisions and operations. It is also part of the high-growth sectors identified in the government’s Industrial Strategy. We call on the UK government to renew its support for legal services trade between the two countries.
“A deal including the legal services sector has the potential to reap massive economic benefits for both countries and would have been highly beneficial for members working with the Indian legal profession. India is one of the last large jurisdictions in the world in which the establishment of foreign lawyers is not possible, meaning a lot of India-related legal work currently takes place outside of India.
“Greater connectivity with the UK legal services market would allow Indian companies to realise their international ambitions within India at a competitive cost. The presence of UK law firms and UK lawyers would not only facilitate international trade but also provide opportunities for young legal professionals to develop globally competitive skills, without needing to leave India for another international hub.
“Many UK law firms have India desks with key expertise in the region and are very active on cross-border legal work involving Indian parties. We would welcome renewed discussions to progress on legal services market access, especially in view of the regulations announced by the Bar Council of India in March 2023 for foreign lawyers and law firms which currently remain in limbo.”
Notes to editors
Read the full free trade agreement announcement.
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