INDIA’S FREE TRADE AGREEMENT (FTA) WITH THE UAE

Negotiations for bilateral free trade agreements with several countries are “well on track” and India is also looking at some multilateral pacts that are fair and equitable for all member countries, Commerce and Industry Minister Piyush Goyal said on Saturday.
India had implemented a free trade agreement (FTA) with the UAE in May 2022 and on December 29, 2022, with Australia to boost bilateral trade and investments. The country is negotiating FTAs with other countries such as Canada, the U.K. And the European Union (EU).
“We are well on track in discussions with several other countries to look at bilateral trade agreements. We are looking at one or two multilateral trade agreements also where we believe we can get benefit,” Mr. Goyal said while virtually addressing the 27th Wharton India Economic Forum.
“It’s essential that agreements are balanced and they are in the best interest of both the countries, they address the sensitivities of both the countries and help us protect certain sectors which we need to protect,” the Minister added.

‘Imports needed’

He said India could not make every product efficiently and that imports are important for those goods. On the other hand, India is competitive in several sectors such as labour-oriented areas like textiles, leather, footwear, and pharma and for that, these pacts would be beneficial.
Due to this, “we decided that we must talk to like-minded countries particularly countries which have a rule-based trading order, which are transparent in their economic systems as India is and enter into arrangements which are win-win for both the sides and which are fair, equitable and balanced,” he said.
On the Regional Comprehensive Economic Partnership that India decided not to join, he said it was an unfair and unbalanced agreement and one of the member countries (China) has a “very opaque” trading system.

SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB

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