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.
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.{{Cite web|agency=ANI |title=India UAE Trade: India-UAE trade deal to be operationalised from May 1: Piyush Goyal |url=https://timesofindia.indiatimes.com/business/india-business/india-uae-trade-deal-to-be-operationalised-from-may-1-piyush-goyal/articleshow/90515162.cms|date=29 March 2022 |access-date=2022-04-05 |website=The Times of India |language=en}}
Overview
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).{{cite web |title=FAQ on FTA |url=https://commerce.gov.in/wp-content/uploads/2020/02/FAQ_on_FTA_9April2014.pdf |website=Department of Commerce |access-date=5 April 2022 |date=9 April 2014}}
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.
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.
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.
Bilateral agreements
= Negotiations concluded =
- {{flag|United Kingdom}} (India–United Kingdom Free Trade Agreement){{Cite news |last=Nelson |first=Eshe |last2=Castle |first2=Stephen |last3=Travelli |first3=Alex |date=2025-05-06 |title=India and UK Strike Trade Deal Amid Trump’s Tariff Upheaval |url=https://www.nytimes.com/2025/05/06/business/uk-india-trade-deal-tariffs.html |access-date=2025-05-06 |work=The New York Times |language=en-US |issn=0362-4331}}
= Under negotiation =
- {{flag|Bangladesh}} (CEPA)
- {{flag|Canada}} (CEPA){{Cite web |date=2022-03-12 |title=India, Canada formally agree to step up talks over FTA |url=https://www.hindustantimes.com/world-news/india-canada-formally-agree-to-step-up-talks-over-fta-101647045171794.html |access-date=2022-04-05 |website=Hindustan Times |language=en}}
- {{flag|Israel}} (FTA)
- {{flag|New Zealand}} (FTA){{Cite web |title=India's Trade Agreements - At a Glance |url=https://www.dezshira.com/library/infographic/india-s-trade-agreements-at-a-glance-7754.html |access-date=2022-04-05 |website=www.dezshira.com|date=11 January 2018 }}
- {{flag|Oman}} (CEPA){{Cite web|url=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 }}{{dead link|date=April 2024|bot=medic}}{{cbignore|bot=medic}}
- {{flag|Peru}} (FTA)
- {{flag|South Africa}} (CEPA){{Cite web|url=https://www.livemint.com/economy/trade-deals-india-exploring-renewed-negotiations-with-new-zealand-south-africa-for-new-fta-deals-11719386100973.html|title=Trade deals: India exploring renewed negotiations with New Zealand, South Africa for new FTA deals | Mint|access-date=2024-06-30|archive-date=2024-06-28|archive-url=https://web.archive.org/web/20240628060707/https://www.livemint.com/economy/trade-deals-india-exploring-renewed-negotiations-with-new-zealand-south-africa-for-new-fta-deals-11719386100973.html|url-status=dead}}
= Proposed =
- {{flag|Oman}} (FTA){{Cite web |date=2021-10-10 |title=India looks to sign FTA with Oman |url=https://www.muscatdaily.com/2021/10/10/india-looks-to-sign-fta-with-oman/ |access-date=2022-04-05 |website=Muscat Daily |language=en}}
- {{flag|Chile}} (FTA){{Cite web |date=2023-08-17 |title=Preparation of free trade agreement with Peru and Chile, many countries are interested in this with India|url=https://www.sangritoday.com/preparation-of-free-trade-agreement-with-peru-and-chile-many-countries-are-interested-in-this-with-india/ |access-date=2023-08-17 |website=Sangri Today |language=en}}
- {{flag|USA}} (FTA)
Multilateral agreements
| class="wikitable sortable"
!Agreement name !Type !Countries/Trading Bloc !Signed !Effective !Ref. |
| Asia-Pacific Trade Agreement (APTA)
|PTA |Bangladesh, China, Laos, Mongolia, South Korea, Sri Lanka |1975 | | |
| ASEAN-India Trade in Goods Agreement
|rowspan = "3" |CECA |rowspan = "3" |{{flag|ASEAN}} |13 August 2009 |1 January 2010 |
| ASEAN-India Trade in Services Agreement
|November 2014 |1 July 2015 |{{cite web |title=ASEAN-India Free Trade Area (AIFTA) |url=https://www.asean.org/wp-content/uploads/images/2015/October/outreach-document/Edited%20AIFTA.pdf |access-date=5 April 2022 |website=ASEAN}} |
| ASEAN-India Investment Agreement
|November 2014 |1 July 2015 |
| Global System of Trade Preferences (GSTP)
|PTA |41 countries |13 April 1988 |19 April 1989 | |
| India Mercosur Preferential Trade Agreement
|PTA |{{flag|Mercosur}} |25 January 2004 |1 June 2009 |
| South Asia Free Trade Agreement (SAFTA)
|FTA |South Asian Association for Regional Cooperation (SAARC) |6 January 2004 |1 January 2006 | |
| India EFTA Trade and Economic Partnership Agreement
|TEPA |EFTA |10 March 2024 | | |
= Under negotiation =
- BIMSTEC (FTA)
- Eurasian Economic Union (FTA){{cite web|url=https://www.thehindubusinessline.com/economy/india-russia-led-eaeu-nations-to-begin-negotiations-on-fta-soon/article67679210.ece/amp/&ved=2ahUKEwiRlMG0jsaDAxXxTWwGHUDbAGoQFnoECBwQAQ&usg=AOvVaw0uqgKRaY-ZAOZWDS8cMQeQ | title=India, Russia-led Eurasian bloc to begin negotiations on FTA soon | date=27 December 2023 }}
- European Union (FTA){{cite web |title=India, EU set to resume free trade talks after 9-year gap |url=https://www.hindustantimes.com/business/india-eu-set-to-resume-free-trade-talks-after-9-year-gap-101655583489758.html |website=Hindustan Times |access-date=19 June 2022 |language=en |date=19 June 2022}}
- Gulf Cooperation Council (FTA){{cite web |title=India, GCC Agree To Pursue Free Trade Agreement; Resume Talks: Piyush Goyal |url=https://www.outlookindia.com/business/india-gcc-agree-to-pursue-free-trade-agreement-resume-talks-piyush-goyal-news-239938 |website=Outlook |access-date=30 December 2022}}
- IBSA (FTA)
- Southern African Customs Union (South Africa, Botswana, Lesotho, Namibia, Swaziland) (PTA)
= Abandoned proposals =
- Regional Comprehensive Economic Partnership (RCEP){{cite news |title=Rcep Trade Agreement: India decides to opt out of RCEP, says key concerns not addressed |url=https://economictimes.indiatimes.com/news/economy/foreign-trade/india-decides-to-opt-out-of-rcep-says-key-concerns-not-addressed/articleshow/71896848.cms |website=The Economic Times |date=5 November 2019 |access-date=5 April 2022}}
See also
References
{{GODL-India-text|title=[https://commerce.gov.in/wp-content/uploads/2020/02/FAQ_on_FTA_9April2014.pdf Free Trade Agreements Frequently Asked Questions (FAQs)]}}
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