Recently, The commerce ministry had organized a two-day “Chintan Shivir” for formulating strategies and standard operating procedures for free trade agreements.
Free Trade Agreement
- Free Trade Agreements (FTAs) are arrangements between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non tariff barriers on substantial trade between them.
- Classification: Preferential Trade Agreement (PTA) Comprehensive Economic Cooperation Agreement (CECA) Comprehensive Economic Partnership Agreement (CEPA)
- Current FTA Negotiations : India is currently negotiating an FTA with the UK, European Union and a widening deal with Australia & also reviewing a trade deal with Association of Southeast Asian Nations (ASEAN) countries.
- India completed negotiations with UAE, Mauritius and a mini trade deal with Australia.
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Key Highlights of Chintan Shivir on FTA Strategy and SOP for Trade Negotiations
Key Themes and Session:
- Economic Assessment and Modeling of FTAs: Experts emphasized the need for comprehensive economic studies and models like Computable General Equilibrium (CGE) for guiding FTA negotiations to synergies between trade and investment policies.
- Incorporation of New emerging areas in FTAs: They discussed trade strategy and vision 2047 & inclusion of environment, labor, gender, and indigenous peoples in trade agreements.
- Services and Digital Trade in FTAs: They talked about cross-border supply, data sovereignty, consumer protection, and cybersecurity & discussed India’s data adequacy issues under EU’s GDPR and e-commerce challenges.
- Standard Operating Procedures for FTA Negotiations: Exports focused on the evolution and benefits of SOPs in enhancing trade agreements. & Stressed the importance of stakeholder consultations and real-time drafting of agreements.
- Capacity Building and FTA Resource Management: In the note they highlighted the role of FTAs in national security and regulatory cooperation & also emphasized interdisciplinary support and the utilization of resources from Indian embassies/missions.
- They also highlighted the challenges and solutions for implementing domestic laws and international treaties.
- Utilization of FTAs to Address Emerging Sectors: Experts deliberated on supply chain constraints, critical minerals, and the impact of geopolitical influences.
Conclusion
Overall Discussions were held to chart a strategic path for India’s future FTA negotiations & Balancing geopolitics and geoeconomics, and integrating non-trade issues in FTAs.
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