The Commerce Ministry recently conducted a two-day “Chintan Shivir” aimed at developing strategies and standard operating procedures for free trade agreements. This event, held on May 16-17, saw the participation of senior government officials from various departments, former government secretaries, and trade experts. Key attendees included representatives from the Ministry of Finance, Ministry of Information Technology, and Ministry of Mines.
During the Shivir, discussions centered on several crucial topics, including India’s trade strategy and long-term vision up to 2047, economic assessments and modeling related to FTAs, and the incorporation of new aspects such as environmental, labor, gender, and digital trade considerations. Experts emphasized the importance of thorough consultations with both public and private sector stakeholders at every phase of FTA negotiations. Additionally, some participants urged the Commerce Ministry to share negotiation details promptly to allow stakeholders to prepare their perspectives on these agreements.
India is actively engaged in free trade agreement (FTA) negotiations with several countries and unions, including the UK, EU, Australia, Eurasian Economic Union, and Peru. The India-EU FTA talks are at a crucial stage and are set to resume after the formation of a new government, according to officials familiar with the matter.
Regarding the India-UK FTA, thirteen rounds of negotiations have already taken place, with the fourteenth round starting on January 10, 2024. Government sources mentioned that discussions on the text of the agreement are nearing completion, and talks on goods and services have progressed significantly. However, there are pending issues to address.
The UK is pressing for substantial reductions in tariffs on its exports to India, such as food, cars, and whisky, which currently face tariffs as high as 150%. On the other hand, India is concerned about the fairness of rules governing Indian workers temporarily transferred to the UK on business visas, who are required to pay national insurance without being eligible for UK pensions or social security benefits.
The negotiations aim to achieve an “ambitious” outcome for bilateral trade, which currently stands at GBP 38.1 billion annually, according to recent data from the commerce ministry.
The seventh round of negotiations for the India-EU Free Trade Agreement (FTA) concluded in February this year. Sources indicate that the eighth round of talks is set to take place from June 24 to 28 in Brussels.
External Affairs Minister S. Jaishankar has described the India-EU FTA as the “most challenging FTA” due to its numerous non-trade-related issues. He emphasized its significance as a key trade priority during a recent event in Mumbai.
Negotiations for the India-Peru Trade Agreement are progressing, with the seventh round held in New Delhi between April 8 and 11, 2024. Both sides are focused on the agreed-upon next steps, and the eighth round is expected to occur in July 2024.
Regarding the ASEAN-India Trade in Goods Agreement (AITIGA), the fourth Joint Committee meeting was held from May 7 to 9, 2024, in Putrajaya, Malaysia, with eight sub-committees convening alongside the main meeting. The fifth AITIGA JC meeting is scheduled for July 29 to 31, 2024, in Jakarta, Indonesia, with a target to conclude the AITIGA review by 2025.