Free trade agreements of India

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India is party to free trade agreements (FTAs) and other trade agreements with many countries and trade blocs, and is negotiating with many others. As of 2022, India has preferential access, economic cooperation and FTA with more than 50 individual countries.

Contents

The negotiations for the Comprehensive Economic Partnership Agreement between India and the United Arab Emirates were completed in 88 days, which was the shortest time span for any free trade agreement signed by India. [1]

Overview

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There are different types of trade agreements that enable preferential market access between India and signatory countries or trade blocs - preferential trade agreements (PTA), free trade agreements (FTA), and Comprehensive Economic Cooperation Agreements (CECA) and Comprehensive Economic Partnership Agreements (CEPA). [2]

A preferential trade agreement (PTA) involves two or more partners agreeing to reduce tariffs on an agreed number of tariff lines (products). The list of products on which the partners agree to reduce duty is called the positive list. In general, PTAs do not cover substantially all trade. The India Mercosur Preferential Trade Agreement is an example of a PTA. [2]

A free trade agreement (FTA) also involves reducing or eliminating tariffs on items traded between the partner countries; however each maintains individual tariff structure for non-members. The key difference between an FTA and a PTA is that PTAs have a positive list of products on which duty is to be reduced, while an FTA uses a negative list on which duty is not reduced or eliminated. Thus, compared to a PTA, FTAs are generally more ambitious in coverage of tariff lines on which duty is to be reduced. The India Sri Lanka Free Trade Agreement is an example of an FTA. [2]

Comprehensive Economic Cooperation Agreement (CECA) and Comprehensive Economic Partnership Agreement (CEPA) are agreements which consist of an integrated package on goods, services and investment, as well as trade facilitation and rule-making in areas such as intellectual property, government procurement, technical standards and sanitary and phytosanitary issues. The India Korea CEPA is one such example and it covers a broad range of other areas such trade facilitation, customs cooperation, investment, competition, intellectual property rights etc. CECA/CEPAs are more comprehensive and ambitious than FTAs in terms of coverage of areas and the type of commitments. While a traditional FTA focuses mainly on goods, a CECA/CEPA provides holistic coverage of many areas like services, investment, competition, government procurement, disputes etc. Further, a CECA/CEPA looks deeper into the regulatory aspects of trade than an FTA. Due to this, it encompasses mutual recognition agreements (MRAs) that cover the regulatory regimes of the partners. An MRA recognises different regulatory regimes of partners on the presumption that they achieve the same end objectives. [2]

Bilateral agreements

CountryAgreement nameTypeSignedEffectiveRef.
Flag of the Taliban.svg  Afghanistan India Afghanistan Preferential Trade AgreementPTA6 March 200313 May 2003 [3] [4]
Flag of Australia (converted).svg  Australia Australia–India Comprehensive Economic Cooperation Agreement (AI-CECA)CECA2 April 202229 December 2022 [5] [6]
Flag of Chile.svg  Chile India Chile Preferential Trade AgreementPTA8 March 200611 September 2007 [7] [8]
Flag of Japan.svg  Japan Japan India Comprehensive Economic Partnership Agreement (JICEPA)CEPA16 February 20111 August 2011 [7]
Flag of Malaysia.svg  Malaysia India Malaysia Comprehensive Economic Cooperation Agreement (IMCECA)CECA8 February 20111 July 2011 [7]
Flag of Mauritius.svg  Mauritius India Mauritius Comprehensive Economic Cooperation and Partnership AgreementCECPA22 February 20211 April 2021 [7]
Flag of Thailand.svg  Thailand India Thailand Free Trade AgreementFTA9 October 20031 September 2006 [7]
Flag of Singapore.svg  Singapore India Singapore Comprehensive Economic Cooperation AgreementCECA29 June 20051 August 2005 [7]
Flag of South Korea.svg  South Korea India Korea Comprehensive Economic Partnership Agreement (IKCEPA)CEPA7 August 20091 January 2010 [7]
Flag of Sri Lanka.svg  Sri Lanka India Sri Lanka Free Trade Agreement (ISFTA)FTA28 December 19981 March 2000 [9]
Flag of the United Arab Emirates.svg  United Arab Emirates India UAE Comprehensive Economic Partnership AgreementCEPA18 February 20221 May 2022 [10] [11]

Under negotiation

Proposed

Multilateral agreements

Agreement nameTypeCountries/Trading BlocSignedEffectiveRef.
Asia-Pacific Trade Agreement (APTA)PTABangladesh, China, Laos, Mongolia, South Korea, Sri Lanka1975
ASEAN-India Trade in Goods Agreement CECAInfobox ASEAN flag.svg  ASEAN 13 August 20091 January 2010 [7]
ASEAN-India Trade in Services Agreement November 20141 July 2015 [7] [19]
ASEAN-India Investment Agreement November 20141 July 2015 [7] [19]
Global System of Trade Preferences (GSTP)PTA41 countries13 April 198819 April 1989
India Mercosur Preferential Trade AgreementPTAFlag of Mercosur.svg  Mercosur 25 January 20041 June 2009 [7]
South Asia Free Trade Agreement (SAFTA)FTA South Asian Association for Regional Cooperation (SAARC)6 January 20041 January 2006
India EFTA Trade and Economic Partnership AgreementTEPA EFTA 10 March 2024

Under negotiation

Abandoned proposals

See also

Related Research Articles

<span class="mw-page-title-main">Free trade area</span> Regional trade agreement

A free trade area is the region encompassing a trade bloc whose member countries have signed a free trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers, import quotas and tariffs, and to increase trade of goods and services with each other. If natural persons are also free to move between the countries, in addition to a free trade agreement, it would also be considered an open border. It can be considered the second stage of economic integration.

<span class="mw-page-title-main">Trade agreement</span> Wide ranging taxes, tariff and trade treaty

A trade agreement is a wide-ranging taxes, tariff and trade treaty that often includes investment guarantees. It exists when two or more countries agree on terms that help them trade with each other. The most common trade agreements are of the preferential and free trade types, which are concluded in order to reduce tariffs, quotas and other trade restrictions on items traded between the signatories.

<span class="mw-page-title-main">South Asian Free Trade Area</span> Multilateral trade agreement

The South Asian Free Trade Area (SAFTA) is a 2004 agreement that created a free-trade area of 1.6 billion people in Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka with the vision of increasing economic cooperation and integration.

A preferential trade area is a trading bloc that gives preferential access to certain products from the participating countries. This is done by reducing tariffs but not by abolishing them completely. It is the first stage of economic integration.

A free trade agreement (FTA) or treaty is an agreement according to international law to form a free-trade area between the cooperating states. There are two types of trade agreements: bilateral and multilateral. Bilateral trade agreements occur when two countries agree to loosen trade restrictions between the two of them, generally to expand business opportunities. Multilateral trade agreements are agreements among three or more countries, and are the most difficult to negotiate and agree.

The Mainland and Macau Closer Economic Partnership Arrangement, or Closer Economic Partnership Arrangement (CEPA) for short, is an economic agreement between the Government of the Macau Special Administrative Region and the Central People's Government on October 18, 2003. A similar agreement, known as the Mainland and Hong Kong Closer Economic Partnership Arrangement, was signed between the Government of the Hong Kong Special Administrative Region and the Central People's Government of the People's Republic of China, signed on June 29, 2003.

<span class="mw-page-title-main">Free trade agreements of New Zealand</span>

New Zealand is party to 14 free trade agreements (FTAs) worldwide. Together they accounted for over 70% of New Zealand's trade in 2023.

The Comprehensive Economic Partnership for East Asia (CEPEA) is a Japanese led proposal for trade co-operation and free trade agreement among the 16 present member countries of the East Asia Summit. All those movements and efforts were taken over by the following Regional Comprehensive Economic Partnership.

<span class="mw-page-title-main">Commercial policy</span> Governments policy governing international trade

A commercial policy is a government's policy governing international trade. Commercial policy is an all encompassing term that is used to cover topics which involve international trade. Trade policy is often described in terms of a scale between the extremes of free trade on one side and protectionism on the other. A common commercial policy can sometimes be agreed by treaty within a customs union, as with the European Union's common commercial policy and in Mercosur. A nation's commercial policy will include and take into account the policies adopted by that nation's government while negotiating international trade. There are several factors that can affect a nation's commercial policy, all of which can affect international trade policies.

<span class="mw-page-title-main">Regional Comprehensive Economic Partnership</span> 2020 Asia-Pacific free trade agreement

The Regional Comprehensive Economic Partnership is a free trade agreement among the Asia-Pacific countries of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. The 15 member countries account for about 30% of the world's population and 30% of global GDP, making it the largest trade bloc in history. Signed in November 2020, RCEP is the first free trade agreement among the largest economies in Asia, including China, Indonesia, Japan, and South Korea.

<span class="mw-page-title-main">Australia–Korea Free Trade Agreement</span>

The Korea–Australia Free Trade Agreement (KAFTA) is a bilateral free trade agreement designed to diminish barriers to trade and investment between Australia and South Korea, effective from the 12th December 2014. The agreement confers substantially improved market access for Australian exporters of goods and services, as well as for investors seeking opportunities within the South Korean market. KAFTA builds upon several decades of bilateral relations, rooted in diplomatic, trade, and security cooperation, which have evolved since 1962. During that year, President Park Chung-Hee introduced a series of five-year economic plans aimed at fostering South Korea's industrial development and accelerating its integration into the global economy in the aftermath of the Korean War.

The Comprehensive Economic Cooperation Agreement (CECA) is a free trade agreement between Singapore and India to strengthen bilateral trade. It was signed on 29 June 2005.

A comprehensive economic partnership agreement (CEPA) or comprehensive economic cooperation agreement (CECA) is a free trade agreement between two countries and may specifically refer to:

South Korea has concluded free trade agreements (FTAs) and other agreements with a trade component with countries around the world and is negotiating with others.

<span class="mw-page-title-main">Australia–India Comprehensive Economic Cooperation Agreement</span>

The Australia-India Comprehensive Economic Cooperation Agreement (AI-CECA) is a bilateral agreement between Australia and India. The two nations launched negotiations for a Comprehensive Economic Cooperation Agreement in May 2011. In September 2021, Australia and India formally re-launched CECA negotiations with the intention of quickly concluding an Economic Cooperation and Trade Agreement (ECTA) to swiftly liberalise and deepen bilateral trade in goods and services, and to then use this foundation to resume negotiations on the more ambitious CECA. On 2 April 2022, an interim agreement was signed by Ministers Dan Tehan, representing the Morrison government of Australia, and Piyush Goyal, representing the Modi Government of India.

<span class="mw-page-title-main">Indo-Pacific Economic Framework</span> Economic initiative led by the United States

The Indo-Pacific Economic Framework for Prosperity (IPEF) is an economic initiative launched by U.S. President Joe Biden on May 23, 2022. The framework launched with fourteen participating founding member nations in the Indo-Pacific region with an open invitation for other countries to join.

"Economic Cooperation and Trade Agreement" is the first trade agreement between India and Australia. Piyush Goyal Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles said while addressing a press conference on the ECTA. Australia has approved the trade pact between these two countries in its Parliament.

<span class="mw-page-title-main">Free trade agreements of Australia</span>

Australia is party to 18 free trade agreements (FTAs) worldwide covering 30 economies.

References

Green copyright.svg This article incorporates text from Free Trade Agreements Frequently Asked Questions (FAQs) , which is a copyrighted work of the Government of India, licensed under the Government Open Data License - India (GODL).

  1. ↑ "India UAE Trade: India-UAE trade deal to be operationalised from May 1: Piyush Goyal". The Times of India. ANI. 29 March 2022. Retrieved 2022-04-05.
  2. 1 2 3 4 "FAQ on FTA" (PDF). Department of Commerce. 9 April 2014. Retrieved 5 April 2022.
  3. ↑ "India-Afghanistan PTA". Department of Commerce. Retrieved 2022-04-05.
  4. ↑ "India-Afghanistan Preferential Trading Agreement Free Trade Agreement". aric.adb.org. Retrieved 2022-04-05.
  5. ↑ "India, Australia sign FTA, trade likely to 'double in 5 yrs, generate 1 mn jobs'". The Indian Express. 2022-04-03. Retrieved 2022-04-05.
  6. ↑ "India-Australia FTA kicks off, nearly 96% exports get free access". Moneycontrol. 29 December 2022. Retrieved 30 December 2022.
  7. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 "Annual Report 2021-2022" (PDF). Department of Commerce. pp. 80–109. Retrieved 5 April 2022.
  8. ↑ "India-Chile Preferential Trading Agreement Free Trade Agreement". aric.adb.org. Retrieved 2022-04-05.
  9. ↑ "Free Trade Agreement" (PDF). Noida Special Economic Zone. Archived from the original (PDF) on 30 June 2022. Retrieved 19 June 2022.
  10. ↑ "What is India – UAE CEPA, how it will benefit both economies?". gulfnews.com. 19 February 2022. Retrieved 2022-04-05.
  11. ↑ Suneja, Kirtika. "India-UAE free trade pact comes into force". The Economic Times. Retrieved 2022-05-10.
  12. ↑ "India, Canada formally agree to step up talks over FTA". Hindustan Times. 2022-03-12. Retrieved 2022-04-05.
  13. 1 2 3 "India's Trade Agreements - At a Glance". www.dezshira.com. 11 January 2018. Retrieved 2022-04-05.
  14. ↑ https://economictimes.com/news/economy/foreign-trade/india-oman-free-trade-agreement-likely-to-be-inked-next-month-official/amp_articleshow/106296361.cms&ved=2ahUKEwjL743fi8aDAxXo-DgGHZZdBh8QFnoECCIQAQ&usg=AOvVaw0HdcbePNkhEQCrZS5pYVnN.{{cite web}}: Missing or empty |title= (help)[ dead link ]
  15. ↑ "Archived copy". Archived from the original on 2024-06-28. Retrieved 2024-06-30.{{cite web}}: CS1 maint: archived copy as title (link)
  16. ↑ "India, UK Free Trade Agreement to boost cooperation in tourism, technology, startups, education, says Piyush Goyal". ANI News. Retrieved 5 April 2022.
  17. ↑ "India looks to sign FTA with Oman". Muscat Daily. 2021-10-10. Retrieved 2022-04-05.
  18. ↑ "Preparation of free trade agreement with Peru and Chile, many countries are interested in this with India". Sangri Today. 2023-08-17. Retrieved 2023-08-17.
  19. 1 2 "ASEAN-India Free Trade Area (AIFTA)" (PDF). ASEAN. Retrieved 5 April 2022.
  20. ↑ "India, Russia-led Eurasian bloc to begin negotiations on FTA soon". 27 December 2023.
  21. ↑ "India, EU set to resume free trade talks after 9-year gap". Hindustan Times. 19 June 2022. Retrieved 19 June 2022.
  22. ↑ "India, GCC Agree To Pursue Free Trade Agreement; Resume Talks: Piyush Goyal". Outlook. Retrieved 30 December 2022.
  23. ↑ "Rcep Trade Agreement: India decides to opt out of RCEP, says key concerns not addressed". The Economic Times. 5 November 2019. Retrieved 5 April 2022.
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