UK Election: Keir Starmer vs Rishi Sunak and the Future of Trade Deals

The UK election, set for this Thursday, could bring significant changes to government policies that impact the economy. The outcome of the polls will determine these changes.

Key Economic Issues

According to S&P Global Market Intelligence, the election could affect the UK’s trade agreements, import duties, industrial support, infrastructure investment, and unionization support. Both the Conservative Party and the Labour Party have similar strategies in these areas, including trade deals and investment support. Smaller parties may play a role in a coalition government, especially regarding EU relations.

Trade Relations

Trade relations with the US will depend partly on the November presidential and congressional elections. A transactional approach to avoiding tariffs may be needed for industrial goods, as the US accounted for significant percentages of UK exports in various sectors over the past year.

Political Landscape

The Conservative Party, led by Prime Minister Rishi Sunak, has been in power for around 15 years. However, most polls predict a Labour government, led by Keir Starmer, could return for the first time since 2010. Over 4,000 candidates are campaigning for the July 4 general election, with major issues including economic stagnation, housing, the cost of living, immigration, and foreign policy.

UK-India Trade Deal

India, a key partner of the UK, is actively negotiating a trade deal. Union Minister Piyush Goyal has expressed confidence in fast progress with the UK, regardless of the election outcome. The thirteenth round of negotiations for the UK-India Free Trade Agreement took place from September 18 to December 15, 2023. Prime Minister Narendra Modi and Prime Minister Rishi Sunak recently expressed satisfaction with the progress made in these negotiations during a bilateral meeting at the G7 Summit in Italy.