London Daily

Focus on the big picture.
Wednesday, Mar 18, 2026

Rishi Sunak rips up Boris Johnson’s trade deal playbook

Rishi Sunak rips up Boris Johnson’s trade deal playbook

New prime minister is opting to wait for more wins from trade talks rather than the headline-grabbing deadlines favored by Boris Johnson and Liz Truss.

Rishi Sunak is tearing up his predecessor’s trade rulebook by prioritizing depth over speed in the country’s post-Brexit deals.

The U.K. prime minister is avoiding the headline-grabbing deadlines favored by both Boris Johnson and Liz Truss, and is opting instead to wait for more wins from trade talks, according to Britain’s allies and people close to negotiations.

The new strategy is being brought into sharp focus in talks with India, people briefed on the negotiations say. Sunak — who is expected to hold his first face-to-face talks with Indian Prime Minister Narendra Modi on the sidelines the G20 summit Wednesday — is holding out for an agreement that delivers more for Britain’s largest sector: services.

Sunak is also taking his time when it comes to joining the 11-nation Indo-Pacific trade pact CPTPP, say some of Britain’s trade allies. Accession to the bloc and a final deal with India aren’t expected now until early to mid-2023, sailing past deadlines set by Sunak’s predecessors.

When it comes to the India deal, Sunak has his own reasons for taking things slow, and may face more scrutiny of his approach than either Johnson or Truss as the U.K.’s first British-Indian prime minister, and with family ties to an Indian IT services empire.

He will, said a person briefed on the U.K.-India talks, “need to avoid accusations that he has signed a deal that favors India, so will negotiate harder and possibly longer to get a deal that is balanced and which he can defend as pro-U.K.”

As a former top finance minister and an ex-Goldman Sachs banker, Sunak is also planning to do more for Britain’s financial services and its services sector generally, the same person added. In the run-up to a now-abandoned Diwali deal deadline set by Johnson and Modi, services firms had been increasingly alarmed at the state of the talks.

Winning big for the services sector will be no easy task, however, with provisions that boost the sector seen as most difficult to get in a deal because they would need India to drop protections on personal data, and require tricky joint ventures and reform of federal regulations.

The Indian government “see a constructive friend and partner” in Sunak, the person said, “but recognize that he will negotiate the best deal possible for the U.K.”


‘One-sided’


Britain has gotten used to signing its deals at breakneck speed since gaining the right to set its own trade policy post-Brexit.

As trade secretary in the Johnson administration, Truss sealed from-scratch free-trade deals with Australia and New Zealand, and expanded a pact with Japan. In each case, negotiations took more or less a year. For most countries, trade negotiations typically take several years. But the flurry of activity came as ministers worked to score deals in record time in order to prove a Brexit dividend.

As trade secretary in the Johnson administration, Liz Truss sealed from-scratch free-trade deals with Australia and New Zealand


The latest British prime minister has already made it clear he has reservations about the U.K.’s approach to date.

Over the summer, Sunak, who represents a rural constituency, branded the U.K.’s agreements with Australia and New Zealand "one-sided." Britain's farming sector has expressed concerns over both deals, amid fears cheaper imports will undercut domestic producers. The U.K. insists safeguards within the deal offer protection to the industry.

“It’s not rocket science … our farming communities are an incredibly important part of our country," Sunak said. He also argued the U.K. "shouldn't be rushing to sign trade deals as quickly as possible."

It’s already been something of a rollercoaster ride for the India deal, seen by ministers as a totemic post-Brexit win for Britain if it gets over the line.

Truss, Sunak’s immediate predecessor who lasted just 45 days in office, was on track to strike a pact with India by the Diwali deadline. But she resigned just days before it could be struck. Britain’s political upheaval and comments by Home Secretary Suella Braverman warning about Indian immigration threw talks off course.

Services firms are now being told to expect more from the India agreement. Trade Minister Greg Hands and Britain’s chief negotiator on the deal with India, Harjinder Kang, told attendees at a London conference late last month that negotiators are keen to include provisions on establishing data flows and to allow British services firms, such as legal and financial services, to operate in India without the need for a local partner.

“I’m hopeful that we will get a better free trade agreement by not rushing it,” said the outgoing Lord Mayor of the City of London Vincent Keaveny, pointing out “there was always a danger” elements would be left out of the deal as a result of the Diwali deadline.

Trade Secretary Kemi Badenoch defended the Diwali deadline at the Tory Party conference in October


Negotiators now “have a better chance of getting progress with India on services,” he said, including on thorny issues like the mutual recognition of professional qualifications, and access to India’s market for the British legal sector.

“He knows the City, he understands the City, he knows the importance of the City," Keaveny said of Sunak. “I would hope that coming with the background that he does, he will understand that promoting the sector, working with us on the priorities for the sector, will be important for the good of the country."

Dominic Johnson, a financier who briefly served as Truss’ investment minister, told POLITICO that the deadline-setting approach to talks tends to weaken Britain’s position.

"I don't know why you'd want to tie yourself to a date like that," said Johnson, a member of Britain’s House of Lords. It is, he argued, “never helpful to give yourself an artificial timeline, because then the person you're negotiating with knows you've got an unnecessary constraint around coming to a conclusion, and you want as much time as it takes.”

Trade Secretary Kemi Badenoch defended the Diwali deadline at the Tory Party conference in October, insisting it was “not arbitrary” and “set quite a while ago,” despite the talks kicking off less than 12 months ago.


Getting MPs on side


While under Sunak, Badenoch won’t be focussed on securing trade deals as quickly as the Truss administration favored, said Kathryn Watson, an expert in trade policy at the consultancy Flint Global, “the U.K.’s FTAs are one of the tangible ‘Brexit benefits’ that voters are aware of and point to.”

The new government will still “want to get deals done with more economically consequential markets like India,” she said, “to show the economic benefit to U.K. business ahead of the next general election.”

Nevertheless, one person who knows the new PM well said Sunak is “a man who gets into the detail, making sure we get things right.”

With the Diwali deadline blown, the U.K.'s Department for International Trade officially says it’s still sticking to other deadlines in place, including getting the U.K. signed up to CPTPP by the end of 2022 — a target set when Truss was trade chief.

Yet Sunak’s focus is first on calming the political and economic instability in the U.K. so that he can get restive Tory MPs on side to support CPTPP accession, said a diplomat from one of Britain’s trade allies.

If he has to wait until later in 2023, they said, “that's fine.”

Newsletter

Related Articles

0:00
0:00
Close
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
UK Set to Introduce Steel Tariffs of Up to 50 Percent in New Industrial Strategy
European Governments Decline Trump’s Call to Send Warships to Reopen Strait of Hormuz
Fears Over Iran Conflict Weigh on UK Consumer Confidence
Starmer Says UK Working With Allies on Hormuz Shipping Plan After Trump Raises Pressure
Iran War and Energy Shock Shake Britain’s Economy and Political Debate
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
AI-Generated Singer Becomes Viral Voice for Iranians With New Anthem
London Private Club Founder Plans Exclusive Palm Beach Venue Near Trump’s Mar-a-Lago
Ed Davey Urges Britain to Build Fully Independent Nuclear Missile Capability
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
US Treasury Links British Polo Patrons to Alleged Venezuelan Oil Proceeds Laundering Scheme
Hundreds Gather in London Despite Ban on Annual Pro-Palestinian March
Two Dead and Multiple Students Seriously Ill After Invasive Meningitis Outbreak at UK University
UK Considers Deploying Ships and Mine-Hunting Drones to Reopen Strait of Hormuz
Starmer and Trump Discuss Urgent Need to Reopen Strait of Hormuz Amid Escalating Iran Conflict
Prince Harry and Meghan Markle’s Planned Australia Visit Draws Mixed Reaction From Local Communities
Trump Calls on France and UK to Help Safeguard Strait of Hormuz Shipping Route
Boris Johnson Labels Bitcoin a ‘Ponzi Scheme’, Sparking Debate in Crypto World
UK Considers Targeted Aid for Vulnerable Households as Energy Costs Rise
Stellantis Urges Immediate Review of UK Electric Vehicle Sales Targets
Home Office Reverses Course to Allow Some Dual Nationals to Enter UK Using EU Passports
Reform UK Proposes Replacing Top Civil Servants With Officials Aligned to Government Agenda
Netflix Adds Critically Acclaimed ‘Best Film of 2025’ With Perfect Rotten Tomatoes Score
‘The Sums Don’t Add Up’: UK Farmers Hit by Soaring Costs as Iran War Disrupts Global Supplies
Confidential UK Biobank Health Records Found Online After Researchers Accidentally Expose Data
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
×