G20 Summit: Modi demands pre-Brexit trade deal, despite European pessimism

india has demanded a trade deal with Britain before it leaves the European Union, despite EU rules stating it is illegal to do so.

This comes as a huge blow to the trading bloc during Brexit negotiations, as India's Prime Minister, Narendra Modi, said he would be willing to sign a trade deal with the UK before the EU does.

This news comes as a relief to Theresa May, who is facing challenges about the post-EU trade from European businesses.

German car manufacturers and French winemakers are lobbying their governments to prevent the UK from accessing European markets unless it retains its Single Market membership. Two of Germany's main industry bosses have recently said that their priority during Brexit discussions will not be to support Britain's EU exit but to preserve the Single Market's existence. Dieter Kempf, President of the BDI, the Federation of German Industries, said the Single Market must maintain its four freedoms: goods, capital, services, and labour.

'The UK will thrive once it leaves the EU.'

This pressure comes despite the fact that Mrs May feeling buoyed that US President Donald Trump also wants to secure a free trade deal with Britain quickly.

He stated the UK would thrive once it leaves the EU, as the Prime Minister emerged optimistic she could arrange various trade deals after the amount of interest displayed towards Brexit during the G20 summit in Hamburg over the weekend.

A UK government source confirmed that Mrs May and Mr Trump invested a considerable amount of time discussing trade, which the Prime Minister said was a powerful vote of confidence in Britain. She added that she was ambitious about the UK's future outside the EU.

An Indian government source said Mr Modi was very positive about a post-Brexit deal. He said leaving the EU is an opportunity for both countries to strengthen their economic relationship and he is willing to work with the British Government to put this plan in place.

'Britain would increase exports to India by more than £2 billion.'

A Commonwealth report revealed that Britain would be able to increase exports to India by more than £2 billion if both nations succeed in arranging a trade deal. This is because the UK would not be restricted by numerous regulations the EU imposes on them. The report also stated that Brexit is an opportunity for Commonwealth countries to negotiate free trade deals with Britain. It also said Commonwealth members were dissatisfied with the EU's slow speed in arranging trade agreements.

In Europe, Ingo Kramer, President of the Confederation of German Employers' Associations, said he is only interested in defending the Single Market during Brexit negotiations.

He said a UK-EU trade deal could only operate if both sides accept the trading bloc's four freedoms.

The Prime Minister rebuked these suggestions, saying that her government was working hard to negotiate a satisfactory trade deal with Brussels. She added that she is confident she will achieve a good deal.

Despite these warnings, India and the USA are not the only two countries that have expressed their desires to form a trade agreement with Britain. According to Downing Street sources, Japanese Prime Minister Shinzo Abe discussed trade with Mrs May. Mr Abe confirmed that a trade deal could form the basis of a future relationship with the UK post-Brexit.

'A "golden era" for British-Chinese relations.'

And during the summit on Friday, China's President Xi Jinping informed Mrs May that investment in Britain had increased since last year's EU Referendum, demonstrating the confidence Chinese businesses have in the UK. He acknowledged this was a golden era for relations between both countries.

The Prime Minister recognised Turkey as another potential trading partner in the future. She said Brexit is an exciting opportunity to strike deals with old friends and new partners. She added that the interest in bilateral trade deals with Britain shows that this is a powerful vote of confidence in British goods, services and people and that she looks forward to building on these conversations in the months ahead.