UK: What Brexit Means For Indian Companies?

Last Updated: 13 July 2018
Article by Stuart Lisle

We are approaching the second anniversary of the historic vote that became the starting gun for the UK's dash for freedom from the EU.  I say dash, but it feels more like a slow, painful drudge through endless political posturing, long painful negotiations behind closed doors and a tiresome tirade of "told-you-so's".

If we look at what has been achieved, it consists of an agreed divorce bill and a set of agreed principles which we expect to shape the future and how the UK will actually exit the EU and when.  As expected, there has been an effective extension added onto the date of leaving in the shape of an "implementation period".  The technical reason for this period is that much of the detail of the future relationship between the UK and the EU cannot be negotiated until the UK becomes a "Third Country" (ie not a member of the EU).  This implementation period gives the UK the same rights and obligations to the EU as it has now, through to 31 December 2020.  The one difference is that the UK will be able to commence discussions with other countries regarding possible future trade agreements. 

There has been much talk about the opportunities for the UK to strike out on its own, into the world of trade and the opportunity to commence those trade talks and shape that future is now just around the corner.

So, once the UK is out the other side of the implementation period, with almost two years of negotiating trade agreements, we have to hope that fast tracked deals will open the UK market to Indian companies and open the Indian market to UK companies for trade. The UK government has expressed its desire to work closely with Commonwealth Countries to build increased trade links and generate GDP growth across the Commonwealth.  At last month's Commonwealth Leaders meeting in London the British Prime Minister called for greater trade within the group of countries and even the opportunity for free trade throughout the Commonwealth, with common standards.  Mrs May also announced UK government funding for a new Commonwealth Standards Network to establish a common language for goods and services to help boost trade.

The UK prime Minister also announced new program to free up trade, improve the skills of young people and boost women's participation in business, including an offer of £7 million ($10 million) in Commonwealth-wide support to boost businesses owned by women in countries where being female is a professional barrier.

"As the United Kingdom leaves the European Union we have the opportunity to reinvigorate our Commonwealth partnerships and usher in a new era harnessing the movement of expertise, talent goods and capital between our nations in a way that we have not done for a generation or more," trade minister Liam Fox stated at the Commonwealth Leaders Meeting.

The announcements by the UK government are aimed at opening trade right across the Commonwealth for all members – this therefore creates international opportunities for Indian countries far beyond just the UK as it leaves the EU.  As Britain looks to finalise its exit from the tight trading arrangements with its current biggest trading partner, the European Union, its desire to create new commerce opportunities is driving far wider opportunities for Commonwealth countries including India.

The creation of a free trade agreement across the Commonwealth will be complex as it will require the agreement of all 53 member states, each with their own specific needs and agendas.  The detail of such an agreement, including such things as common standards, will take a significant amount of time, but the political will is there and this is going to be key.

There are huge opportunities for Indian companies as a result of the global changes that are being discussed as a result of the UK's exit from the EU. These opportunities are not restricted to the UK, if this ambitious plan for a pan-Commonwealth free trade agreement comes to fruition.  The good news for India's companies is that the leaders of the Commonwealth are supportive.  This opens a potential market of 2.3 billion people - almost a third of the world's population – to Indian companies.  This is a huge change and Indian companies need to be prepared to operate within the common standards and explore this new market if they wish to get the greatest benefits.

The growth in international trade will also open India to foreign companies, keen to access the fastest growing middle class market in the world.  So, even if Indian companies choose not to explore the new international markets for free trade across the Commonwealth they need to meet the challenge of new entrants into their domestic market.  This means that they need to ensure that they work to the common standards, which are agreed, and can match margins, product ranges and price.

The other major change with free trade deals, especially across such a large trading block is the change in the labour market across the trading block.  Free trade normally brings more open borders for workers from the trading partner nations.  This will result in Commonwealth-wide opportunities for Indian workers to pursue their careers with the potential to take skills away from India, however the free trade area will also bring skills and opportunities into the Indian domestic market, creating new opportunities for Indian companies to benefit.

Therefore, like every fundamental shift in the status quo, there are huge opportunities for Indian companies from the opening of international markets but also some significant potential domestic challenges from new market entrants.  Indian companies are known for their innovative nature and so we would expect them to quickly adjust to change and take advantage of the opportunities this change will bring. On balance, I see the changes ahead can only be positive for the Indian economy and Indian companies as they have new markets opened to them and have the opportunity to employ new skills throughout their businesses.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions