• Dhaka Wed, 01 MAY 2024,
logo

India looks to broaden FTA network, to consider proposals from South America

International Desk

  07 Aug 2023, 15:21

India is evaluating free-trade proposals from a clutch of South American and African countries, as it seeks to be more open to such agreements, in its bid to improve access to world markets for goods and services.

While a free trade agreement with the UK is set to be completed before the end of the year, and negotiations are underway with the European Union, Australia and Canada for broad economic partnership agreements, talks are to restart soon with Peru for such a pact, after a break caused by the pandemic

“We have decided to proceed with the FTA negotiations with Peru. We would be working out the priority areas… Post September, we will start engaging,” commerce secretary Sunil Barthwal told reporters here. The secretary said Chile is also requesting for a similar agreement. “If the countries are interested in FTAs, we will also look into possibilities,” he said on the sidelines of CII’s India-LAC conclave.

The Latin America and the Caribbean (LAC) Region nations include Belize, Ecuador, Nicaragua, Brazil, El Salvador, Panama, Chile, Guatemala, Peru, Costa Rica, Guyana, and Suriname.

Peru is the fourth leading trade partner of India in the LAC region, while India is Peru’s ninth-largest global trading partner. The FTA talks had started in 2017 but got disrupted due to Covid.

India-Peru bilateral trade stood at $3.11 billion in 2022-23, down from $3.6 billion in 2021-22. In FY23, India’s exports to Peru were $866 million and imports stood at $2.25 billion.

Exports to Peru include automobiles, motorcycles and three-wheelers, polyester and cotton yarns, pharmaceuticals, iron and steel products, plastic products, rubber, pipes for oil and gas industry, tyres and pipes. India imports gold, copper, synthetic filaments, phosphates of calcium, fresh grapes and other farm products from the country.

As far as the India-UK FTA is concerned, both sides are close to reaching a common ground on issues of intellectual property rights, rules or origin and investment treaty. On the other contentious issues of automobile tariffs and wines and spirits also, both sides have reached a broad consensus.

On automobiles, the UK wants India to cut duties on imports for its manufacturers from the highs of 100% and on spirits from 150%. India is also seeking a change of rules regarding classification of products under the category so that its wines and spirit industry gets access to the UK market.

The Indian industry is demanding greater access for its skilled professionals in the UK market while the UK is looking for more opportunities for its services into the Indian markets.

Barthwal said considering that imports from India constitute less than 2% of LAC’s total imports, there is significant scope for expansion of the India-LAC bilateral trade. Efforts are underway to double the bilateral trade to $100 billion. In FY23, bilateral trade between India and LAC countries was close to $50 billion.

Barthwal also emphasised the need for a closer India-LAC cooperation in the area of energy transition. Fresh thinking is called for in areas like renewals, battery manufacturing, energy storage technology and chemical industry impact that are aligned with the net-zero goal, he said.

Source: Financial Express

Comments

  • Most Viewed News Of International
Read More
India to export 99150 tonnes of onions to Bangladesh
The Indian Product Boycott Movement vs. Reclaiming the Hat
Jasprit Bumrah becomes 2nd Indian pacer to pick 150 IPL wickets
First consignment of Indian onions arrives