After three years of complex negotiations, the United Kingdom and India have finally signed a long-anticipated free trade agreement (FTA) — a deal celebrated for slashing tariffs on a range of goods from whisky to textiles. But for legal professionals, this agreement rings hollow. Despite years of advocacy and diplomatic nudging, the pact excludes one key sector: legal services.
The Law Society of England and Wales, along with leading voices in the UK legal community, have not hesitated to voice their disappointment. Society President Richard Atkinson called the omission a “missed opportunity,” emphasizing that legal services are not just a standalone industry but a critical enabler of trade, investment, and economic activity across all sectors.
Why Legal Services Matter in Trade Deals
Legal services underpin international commerce. They are foundational to due diligence, contract enforcement, dispute resolution, and cross-border compliance — particularly in sectors like finance, energy, infrastructure, and pharmaceuticals, which often form the spine of bilateral trade. By excluding legal services from this FTA, both nations may have constrained their economic potential, especially in high-growth, knowledge-driven sectors.
The Law Society argues that a more open legal market between India and the UK would benefit both jurisdictions. In India, access to international legal expertise could lower costs for domestic firms with global ambitions. UK firms, in turn, would gain opportunities to collaborate and invest in a rapidly expanding legal market.
India’s Legal Market: Still Walled Off
India remains one of the few major global economies where foreign lawyers cannot practice law, advise on foreign legal matters, or establish law firms. This isolationist stance, enforced by the Bar Council of India (BCI), means much of the legal work connected to India — including arbitration and corporate transactions — continues to be conducted in global hubs like London, Singapore, and Dubai.
While hopes were briefly lifted in 2023 when the BCI released draft rules that hinted at allowing limited participation by foreign lawyers, progress has since stalled. Domestic resistance, particularly from the Society of Indian Law Firms, has slowed reforms and complicated prospects for market liberalization.
The Legal Community Reacts
Atkinson’s remarks were echoed by Bar Council Chair Barbara Mills KC, who acknowledged the broader economic win for the UK but condemned the exclusion of legal services. “Our aim is not — and has never been — to compete with Indian law firms,” she said, “but to collaborate and enhance the international arbitration landscape.”
Mills emphasized that the integration of UK legal expertise could bolster the efficiency and global standing of India’s dispute resolution infrastructure. This is particularly significant given India’s ambitions to become a major center for international arbitration.
What Was Lost: A Once-in-a-Generation Opening
The legal profession views this moment as a squandered chance to redefine bilateral legal cooperation. Inclusion in the FTA could have set in motion a gradual, structured entry of UK firms into the Indian legal ecosystem, beginning with advisory roles on foreign law, secondments, and joint ventures. Such a shift would not only have strengthened trade but also created opportunities for young legal professionals on both sides to upskill and globalize their careers without needing to emigrate.
The UK government, while applauding the broader trade achievements, has yet to offer a clear path forward for legal services. For many in the legal community, this silence suggests that the government may be willing to prioritize short-term gains in physical goods over long-term structural alignment in professional services.
Next Steps: Reignite Negotiations, Advocate for Change
The Law Society has urged the UK government to continue pushing for legal services access through bilateral dialogue and sectoral agreements. Even outside the formal FTA framework, mechanisms exist — such as mutual recognition agreements, regulatory cooperation, and working groups — that could inch both nations toward a more open legal framework.
Atkinson and Mills remain hopeful but cautious. The UK legal profession stands ready to collaborate, but meaningful change will require political will, regulatory flexibility, and a shift in India’s legal establishment toward global integration.
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